Blocked by X API, Crypto Twitter "InfoFi" enters history, Kaito drops over 20%

Despite the latest features leak on X, rumors suggest that stocks and cryptocurrencies could be tradable on the platform as early as next month. However, many Crypto Twitter accounts have reported decreased reach, prompting X product lead Nikita Bier to respond: since October last year, an incorrect misconception has been spreading within Crypto Twitter—that by engaging heavily and replying wildly every day, accounts can sustain growth. This has resulted in many crypto accounts posting and replying hundreds of low-value contents daily, such as repeatedly saying “GM” or participating in conversations with no substantive information.

(Can US stocks and cryptocurrencies be traded on Twitter as early as next month? X (Leaked new feature interface of Twitter)

Early this morning, X announced it would block the API of InfoFi platforms, causing Kaito, Cookie, and others to drop over 20%. Kaito immediately announced it would cease the Kaito Yaps feature, focusing instead on cross-platform marketing tools like Kaito Studio for Instagram and YouTube.

X Product Lead: CT Dying from Constantly Posting Low-Value Content

Recently, multiple Crypto Twitter (CT) accounts have reported that, without obvious violations, their post reach suddenly plummeted, with almost no traffic, sparking intense community debate over whether X’s algorithm is deliberately suppressing crypto content.

Nikita Bier responded that since October last year, a false belief has been circulating within Crypto Twitter—that by engaging heavily and replying wildly every day, accounts can maintain growth. This has led many crypto accounts to post and reply hundreds of times daily with low-value content, such as repeatedly saying “GM” or engaging in meaningless conversations.

However, under X’s recommendation mechanism, each post consumes the daily reach quota. Since most users only browse about 20–30 posts per day, the platform cannot fully push all content to all followers. The end result is that accounts waste their reach resources on meaningless interactions, and when they finally publish project announcements or analysis content, only a few see it. Bier bluntly states: “Crypto Twitter isn’t dying from the algorithm; it’s dying from self-sabotage.”

X Blocks InfoFi Platforms: Kaito, Cookie Drop Over 20%

Beyond content behavior, X has also taken steps to regulate the ecosystem. Recently, X announced revisions to its developer API policies, explicitly banning any apps rewarding users for posting, known as “infofi” models. The company pointed out that such apps have generated大量 AI-generated content and spam replies, severely impacting user experience.

X has revoked API access for related apps and stated that as bots can no longer profit from posting, users should gradually notice an improvement in content quality. For developers whose accounts have been terminated, X even suggested migrating their business to platforms like Threads or Bluesky.

Kaito, Cookie, and other InfoFi platforms have all dropped over 20% as of press time.

What is Kaito Studio? How Does the Cross-Platform Marketing Tool Work?

However, Kaito seemed prepared, quickly announcing after the InfoFi ban that it would gradually shut down Yaps, which previously focused on open incentives and leaderboard mechanisms, and launch a new product, Kaito Studio, as a successor, marking a new phase for Kaito. Kaito Studio is not an emergency iteration but a move away from its previous focus on brand exposure on platforms like Instagram rather than X.

Kaito explained that Yaps originally aimed to embody the Web3 spirit, allowing users and creators to contribute in an open, permissionless, and contribution-centered system, bringing exposure and rewards for brands. But over the past year, despite efforts to raise thresholds, introduce social and on-chain filtering, and adjust incentive designs, issues with low-quality content and spam persisted, closely tied to X’s overall algorithm adjustments and the surge of InfoFi projects.

After discussions with X, the Kaito team concluded that the permissionless distribution model no longer meets the needs of high-quality brands, serious creators, and the platform itself. Therefore, they shifted toward a more traditional marketing collaboration model. The new Kaito Studio will enable brands to select suitable creators based on clear standards, integrating top analytics tools, cross-platform reach (covering X, YouTube, TikTok, etc.), and cross-industry expansion from crypto to finance, AI, and beyond.

Kaito also noted that this transformation reflects an industry shift from high-traffic, airdrop-style distribution to more precise, results-oriented marketing strategies. 2026 will be a pivotal year for Kaito to surpass Crypto Twitter and even the broader crypto industry. Future Kaito Studio will continue to use ) as part of its ecosystem, while other products like Kaito Pro, API, Launchpad, and the upcoming Kaito Markets will remain unaffected.

Cookie Snap Enters History, Cookie Pro Launches in Q1

Another InfoFi platform, Cookie, also announced major adjustments. Cookie stated that due to rapid changes in the InfoFi ecosystem and platform policies, the team has decided to shut down the Snaps platform and all ongoing creator activities. Cookie explained that this decision was made after discussions with the X team regarding API and usage policies—an difficult but necessary choice to maintain the integrity of Cookie’s core data layer and products.

The company admitted that although they have always aimed to comply with X’s regulations, under the current policy environment, the feasibility of creator incentive activities like Snaps remains uncertain and awaits further clarification from X. Cookie emphasized that other product lines are unaffected, and the company will continue serving enterprise clients with data and market intelligence. They also announced that Cookie Pro, which has been in development for some time, will be launched in Q1 this year. For affected projects and creators, the team promised to communicate individually to seek fair solutions and maintain transparency.

This article first appeared on Chain News ABMedia: X bans API, Crypto Twitter “InfoFi” enters history, Kaito drops over 20%.