X has revoked API access for applications that reward users for posting, deeming these models responsible for a massive influx of automated spam and low-quality content.
X closes the door to incentivized publishing models
In a message from its product manager, X confirmed revoking API access for applications that pay users to publish or interact on the platform. According to the company, these mechanisms have led to an explosion of low-quality content, often produced or amplified by AI models.
The diagnosis is clear: ‘infofi’ would have led to a proliferation of automated responses, artificially inflated threads, and blurred signals for users. The stated goal is clear: to improve the experience on X by cutting financial incentives to post at all costs.
For affected developers, X offers a transition to other social networks like Threads or Bluesky, a sign that the decision is structural and not temporary.
Kaito directly impacted by the rule change
Kaito finds itself on the front line. The project relies on aggregating and analyzing influential crypto account publications on X to identify trending subjects, narratives, and tokens. This positioning quickly classified it as ‘infofi,’ even though its product presents itself primarily as a monitoring and analysis tool.
In the minutes following the announcement, the Kaito token dropped by over 20%, before deepening its losses. It is now trading around $0.55, down approximately 18% for the day.
The contrast is stark compared to the euphoria that followed its airdrop in early 2025. At its peak, Kaito’s theoretical valuation briefly flirted with $2 billion, driven by enthusiasm for ‘attention x token’ models.
Infofi, a weakened narrative
The episode highlights the economic fragility of many infofi projects. Their value proposition is closely tied to existing social platforms, especially X, which still dominates most real-time crypto exchanges. A simple policy adjustment is enough to challenge an entire model.
More broadly, X sends a clear message to the market: direct monetization of engagement, especially when based on tokenized incentives, is no longer welcome. This raises a fundamental question for projects trying to turn attention into a financial asset without controlling for quality or negative externalities.
A warning for the social crypto ecosystem
For investors, Kaito’s fall serves as a harsh reminder. Projects built on strong dependencies on centralized platforms remain exposed not only to financial risks but also to political and operational risks. In this case, the risk did not come from a bug or a hack, but from a unilateral rule change.
In the short term, pressure may remain high on Kaito and all infofi-related tokens. In the longer term, the ecosystem will likely need to rethink its models, either by emancipating from major platforms or by offering uses that are harder to equate with simple paid spam.
One thing is certain: the era where raw attention could be tokenized without friction is likely coming to an end.
Update: Kaito quickly responded to the announcement by unveiling the end of ‘yaps’ and a new version of its service, ‘Kaito Studio’.
