This Thursday, it was revealed that the social network X has revoked API access for platforms that reward users with crypto assets, a move confirmed following a massive surge in automated content. In response to this ban on InfoFi apps on X, Kaito founder Yu Hu announced the immediate shutdown of its “Yaps” product, causing the price of the KAITO token to drop more than 15% in recent hours.
The prohibition comes as a response to the AI-generated spam crisis, which, according to CryptoQuant, increased irrelevant posts by 1,224%. The impact of the ban on InfoFi apps on X dismantles a mass distribution model that, while successful in generating traction, was criticized for degrading the user experience and fostering artificial engagement within the crypto community.
It was further learned that Kaito will pivot toward “Kaito Studio,” a tier-based marketing platform expanding to TikTok and YouTube. Moving forward, investors must monitor the viability of this new permissioned model and the transition of the 157,000-member “yappers” community, as the sector searches for monetization alternatives following the block on X.
Source:https://x.com/nikitabier/status/2011825522817270230
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