Platform X bans InfoFi-type applications from using APIs, leading to a crash in tokens like Kaito, Cookie, and others, with projects forced to halt operations or pivot. This move exposes Web3’s dependence on Platform X and may drive the ecosystem of “撸毛” back to on-chain interactions and decentralized social platforms.
(Background recap: Elon Musk’s X abruptly kills InfoFi! Kaito plummets 15%, API access rights for related applications are fully revoked)
(Additional context: V神’s first review of LLM: Grok essentially saves Platform X by “helping truth dissemination,” but still has many hallucinations)

Table of Contents

• Why did X give up millions of dollars in revenue?
• InfoFi tokens crash, projects forced to stop or pivot
• Fragile “parasitism,” the Web3 marketing Twitter dependency syndrome
• “嘴撸” cooled down, should the “撸毛” track return on-chain?

Nikita Bier, head of X product, posted that they are revising developer API rules. Applications that reward users for posting on X (e.g., “Infofi”) will be banned from accessing X API, as they have led to a flood of AI spam messages and replies on the platform.

Affected by this, platforms like Kaito, Cookie, Pulse have announced pivots or shutdowns.

We are revising our developer API policies:

We will no longer allow apps that reward users for posting on X (aka “infofi”). This has led to a tremendous amount of AI slop & reply spam on the platform.

We have revoked API access from these apps, so your X experience should…

— Nikita Bier (@nikitabier) January 15, 2026

Why did Platform X give up millions of dollars in revenue?

According to X’s enterprise API application form, such APIs start at $42,000 per month, and can exceed $210,000 depending on usage and customization needs.

Enterprise Access Form | Source: X documentation

For applications like InfoFi that make high-frequency API calls, they could contribute hundreds of thousands or even millions of dollars annually to X’s revenue.

However, X chose to proactively cut off this revenue stream. Nikita Bier bluntly stated in a declaration: these applications are the main culprits of AI spam and bot flooding.

These projects induce users to post with tags, or reply with echo chamber-like responses to earn points. This results in ordinary users’ timelines being flooded with low-quality, repetitive crypto promotion content.

For X, the core value of the platform is “authentic human social interaction.” When the platform is filled with AI-generated nonsense created just to farm airdrops, X’s attractiveness and user stickiness as a social platform decline.

For a platform with annual revenue in the billions, hundreds of thousands of dollars in API income is trivial, and maintaining the authenticity of platform content is clearly a longer-term business goal.

Bier even sarcastically suggested that affected developers “migrate to Threads or Bluesky,” showing X’s zero tolerance for such “parasitic applications.”

InfoFi tokens crash, projects forced to stop or pivot

X’s API ban directly impacts multiple projects in the InfoFi sector.

According to Bitget data, Kaito ($KAITO), as a leading project in the sector, saw its token price drop from about $0.70 to below $0.55, a decline of over 20%; Cookie ($COOKIE) fell from around $0.044 to below $0.038, a drop of over 13%.

KAITO (left) and COOKIE (right) 1-hour K-line chart | Source: Bitget

Other related assets, such as Kaito’s Yapybaras NFT floor price, dropped about 50%, and Wallchain Quacks’ Quack Heads NFT floor price fell from 3 SOL to 1.2 SOL.

Yapybaras (left) and Quack Heads (right) NFT floor price trends | Source: OpenSea (left), MagicEden (right)

The sector “leader” Kaito announced the closure of Yaps business and incentive leaderboard, and launched Kaito Studio, shifting from “mass participation and earning” to a model similar to traditional marketing tiers. The brand will select specific creators for targeted advertising, and extend its reach to platforms like YouTube and TikTok.

Cookie quickly followed, announcing the shutdown of Snaps incentive platform and all creator activities. The team will refocus on B2B data analysis tools (like Cookie3 Analytics) and the upcoming AI market intelligence tool Cookie Pro.

Additionally, XEET announced the platform will enter maintenance mode and cease operations. Pulse also stopped platform operations, and cannot distribute rewards for activities ending after December 3, 2025, but the leaderboard has been handed over to various projects. Wallchain Quacks, Bantr, River, and similar platforms have not yet responded.

Fragile “parasitism,” the Web3 marketing Twitter dependency syndrome

This ban not only exposes the “InfoFi” facade but also reveals the current industry state: X has long been regarded as Web3’s biggest traffic source and main marketing battleground, heavily relying on the platform for Web3 marketing strategies.

Once X adjusts API rules or tightens moderation, the Web3 marketing engine will stall. For example, in June 2025, X conducted a large-scale ban on crypto-related accounts, with official GMGN accounts and founder Haze’s accounts suddenly frozen; other well-known crypto KOLs like ShaPoLang, Wang Xiaoer, and Wizards were also banned.

When X strikes, the platform can only admit defeat, illustrating that Web3 social and marketing are “dependent on others.” Without breaking free from reliance on a single centralized platform for traffic, true “native sovereignty” in Web3 remains a hollow phrase.

“嘴撸” cooled down, should the “撸毛” track return on-chain?

The hottest “InfoFi” in 2025 was actually built on the premise that “X is Web3’s largest traffic source + its API can be monetized.” So, it’s no surprise that this model cooled off; what’s surprising is that it lasted over a year on X before being eliminated.

In the past, “撸毛” focused on testing products, providing liquidity, or offering feedback, rather than social spamming. After the ban, the “撸毛” track can shift back to on-chain interactions.

Airdrop incentives for early users, DeFi liquidity mining, ZK proof interactions—these forms are not limited by a single platform’s API and generally focus more on rewarding genuine users and resisting sybil attacks.

SocialFi may also see a resurgence. Developers building on Farcaster, Base App, or Lens won’t need to worry about sudden API cuts like on X. Decentralized protocols are transparent and hard to unilaterally reverse, giving projects real protocol-level security.

For professional KOLs relying on deep research, first-hand Alpha info, and unique insights, this is a “rectification” at the industry level. Those “嘴撸” KOLs who profited from AI matrices and meaningless interactions will face revenue cuts, while high-quality content creators with professionalism will regain market recognition.

Binance’s Binance Square and OKX’s Orbit community will also become new highlands for Web3 traffic. Exchanges build communities to shorten the path from information to transaction.

In this closed-loop ecosystem, one-click trading and social copy trading improve conversion efficiency. Once users establish social circles and habits within exchanges, the cost of migration will surpass that of non-vertical social platforms like X, making exchange communities the best safe haven for InfoFi transformation and trading guidance.