X API Ban Kills Kaito and InfoFi Crypto Projects: The Death of AI Slop?
X has revoked API entry for apps that reward customers for posting on the platform, successfully banning so-called “InfoFi” tasks that paid customers to generate engagement.
Product lead Nikita Bier mentioned the mannequin created “an incredible quantity of AI slop and reply spam,” including that the modifications ought to shortly enhance the standard of content material as soon as automated bots cease getting paid.
InfoFi Crypto Projects Collapse
The choice triggered a direct sell-off throughout InfoFi tokens. Kaito, Cookie DAO, BubbledMaps, Loud, Arbus and a number of others fell sharply inside hours as merchants priced within the loss of their core distribution and development engine.
In response, Kaito founder Yu Hu confirmed the corporate will sundown Yaps and its incentivized leaderboards and pivot to a brand new product referred to as Kaito Studio.
Cookie, one other InfoFi platform, additionally introduced it could shut down Snaps, its creator marketing campaign system, after discussions with X about API and utilization insurance policies.
The firm mentioned it stays an Enterprise API buyer however couldn’t function reward-based posting applications below the brand new guidelines.
Crypto Twitter Can Breathe Again
The market response was swift as a result of InfoFi tokens have been constructed round monetizing consideration on X. These platforms tracked posts, replies, and engagement, then distributed tokens or factors to customers who generated visibility for tasks.
Kaito’s Yaps system grew to become the most important model of this mannequin in crypto, driving tons of of hundreds of customers, significantly in South Korea, in response to the corporate.
However, the mannequin had already come below pressure. Kaito’s KAITO token launch in early 2025 sparked heavy backlash after customers discovered that Yaps points converted into much smaller token allocations than anticipated.
Critics additionally pointed to insider-heavy tokenomics and quick post-airdrop selling, which pushed the token decrease and broken belief within the incentive construction.
Those issues intensified as AI-generated content material flooded X. Because Yaps rewarded quantity and engagement at scale, bot networks and low-quality farms more and more dominated leaderboards. This diluted real analysis and commentary.
X’s API crackdown now forces a tough reset. Many merchants and creators welcomed the transfer, arguing that incentive farming had hollowed out natural crypto discourse.
The broader InfoFi sector now faces an existential shift as the eye economic system on X strikes from open tokenized rewards to curated, platform-compliant partnerships.
The put up X API Ban Kills Kaito and InfoFi Crypto Projects: The Death of AI Slop? appeared first on BeInCrypto.