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4mo ago

X Bans 'InfoFi' Reward Apps, Revokes API Access Over AI Spam

The move triggered token sell-offs, prompting Kaito to end rewards as it shifts to selective creator marketing.

X cracks down on 'InfoFi' reward models, triggering sell-offs across crypto social tokens
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Kaito to sunset 'yaps' as x cracks down on infofi apps, token falls 17%
X bans infofi apps, kaito token slides as incentivized posting ends

Overview

  • X Head of Product Nikita Bier said apps that pay users to post are no longer allowed under revised developer API policies.
  • API access for InfoFi apps was revoked immediately, with X citing timelines flooded by AI-generated low-quality content and reply spam, and analytics showing 7.75 million crypto posts on Jan. 9, a 1,224% jump.
  • KAITO fell roughly 15–20% after the announcement and other InfoFi-linked tokens such as Cookie DAO also dropped as investors repriced the sector.
  • Kaito is sunsetting its Yaps rewards and introducing Kaito Studio, a tiered creator-marketing platform that will operate across X as well as YouTube and TikTok.
  • Bier offered to help terminated developers transition to Threads or Bluesky and said paying for enterprise API access would not preserve InfoFi access.