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2h ago

X Bans ‘InfoFi’ Reward Apps, Revokes API Access to Curb AI Spam

The crackdown follows a documented surge in automated crypto posts that X says degraded timelines.

X cracks down on 'InfoFi' reward models, triggering sell-offs across crypto social tokens
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
KAITO drops 20% as X blocks InfoFi apps to fight spam

Overview

  • Head of product Nikita Bier said X revised its developer API policies to prohibit apps that pay users for posting.
  • API access for affected apps was cut off immediately, and developers were offered help transitioning to Threads or Bluesky.
  • CryptoQuant reported 7.75 million crypto-related posts from bots on Jan. 9, a 1,224% jump attributed to InfoFi activity.
  • Markets slid after the announcement: KAITO fell about 20% to roughly $0.56 per CoinGecko, and Kaito’s Yapybaras NFT floor dropped over 50% on OpenSea.
  • Kaito said it will sunset Yaps and pivot to Kaito Studio, a selective creator-marketing platform expanding to YouTube and TikTok.