2026-01-16 08:26:38

Recently, X (formerly Twitter) changed its rules, announcing that applications rewarding users for posting are no longer allowed to access the API. The official explanation is to combat AI-generated spam content and spam comments. This move seems simple on the surface, but in reality, it throws a bomb into the entire InfoFi sector.

What is InfoFi? In simple terms, it’s about using tokens to incentivize users to post, share opinions, and do analysis on social platforms. This model sounds good, but the problem is—it's heavily dependent on X. Projects like KAITO and COOKIE DAO rely on X’s API to fetch posting data, engagement metrics, and leaderboard info, using these as incentive indicators.

Once X bans access, these projects immediately suffer. KAITO directly stopped its posting incentive mechanism, and COOKIE shut down the Snaps feature. The market reacted quickly—KAITO’s token dropped 15-20% in the short term, COOKIE fell 10-18%, and the entire InfoFi sector generally declined 10-15%. Investors looking at this scene draw a straightforward conclusion: reliance on a single platform makes the business model fragile.

The root of the problem is even deeper. The incentive logic of InfoFi fundamentally still depends on Web2 social platforms, API permissions, and posting data. Once Web2 platforms change their policies, the Web3 side faces a direct disconnect. This incident exposes the inherent fragility of Web3 built on Web2 infrastructure.

Currently, projects are shifting strategies. KAITO is transitioning to develop Kaito Studio, focusing on brand marketing and creator tools. COOKIE is preparing Cookie Pro, aimed at real-time market intelligence. Essentially, they are moving from platform reward dependence toward tools and value-added services.

In the long run, this event offers many lessons. Relying on centralized platforms is truly risky—policy changes can trigger re-pricing across entire sectors. Future incentive models are more likely to combine on-chain identity, reputation mechanisms, and intellectual property, rather than simple "view boosting." Attention economy will still exist, but the incentive approach must evolve from "brute-force view inflation" to "genuine value contribution."

KAITO-2.98%

COOKIE-7.08%

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ProofOfNothing

· 8h ago

This is the common problem of Web3—always relying on the cheap Web2 solutions. Relying on a single platform will eventually backfire, as expected. To put it simply, it's still the "traffic boosting" mindset that hasn't evolved; only truly creating value counts. One word from Elon, and the entire track collapses... It's really a bit outrageous. Transition, transition, and more transition—only those who can survive truly count.

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AirdropHunter

· 8h ago

Once again, the platform imposes a one-size-fits-all approach, choking the lifeblood of Web3. That's why I never trust projects that rely on Web2; they will eventually fail. Whether to pivot or not depends on whether they can truly survive; just changing a name is useless.

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NFTregretter

· 8h ago

This is a classic case of "putting all your eggs in one basket." Problems should have arisen long ago. KAITO and COOKIE's recent drops are well-deserved; they are entirely due to architectural flaws they caused themselves. Ultimately, Web3 still isn't truly decentralized. Relying on APIs means depending on platform favor. Switching to the tooling track can survive; simply boosting metrics for incentives has no future. Wait, can on-chain identity and reputation really work? It still feels like it will take time. This has been a lesson for all projects aiming to implement incentives.

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AirdropHunterKing

· 8h ago

Oh no, this is what I often say—put all your eggs in one basket, and you'll eventually get it smashed. KAITO and COOKIE were directly cut off by X, basically too dependent. I’ve seen this problem long ago, thought about it when I was mining for rewards before, but who would have expected X to act so quickly? A 15-20% drop is actually quite gentle; I’ve seen projects fare much worse. The key is that this incident has exposed a truth—no matter how strong Web3 is, without data support from Web2 platforms, your incentive mechanisms are just air coins. Transitioning is definitely the only way out, but the question is, can the new toolchain truly generate value? Or is it just another round of packaging? I think we need to observe carefully, don’t rush to go all in.

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SignatureDenied

· 8h ago

It's been obvious for a while that this thing was going to crash; Web3 still has to reinvent the wheel itself.

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MEVHunterZhang

· 9h ago

Oh no, this is a classic case of putting all your eggs in one basket. One move by X can blow up the entire line. To be honest, I've seen this risk coming for a long time. The fact that Web3 relies on Web2 is itself quite painful. The decline of KAITO and COOKIE isn't even the worst. The key is that these projects need to actually deliver something meaningful in the future.

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