Platform X bans InfoFi app, and tokens like Kaito drop over 15% in response

RektRecovery · 2026-01-15T17:20:11+00:00

Platform X recently banned applications using the "InfoFi" mode due to the proliferation of low-quality AI-generated content. After API access was revoked, the related token Kaito dropped by over 15%. The Kaito team and the platform reached a consensus to cease reward functions that conflict with quality standards, demonstrating that innovative mechanisms must comply with platform ecosystem governance.

RektRecovery

2026-01-15 17:20:11

Abstract generation in progress

【CryptoWorld】Recently, the X platform has been taking frequent actions against a category of applications that attract users through content rewards. This model, known in the industry as “InfoFi,” has been banned. The official reason given is the proliferation of low-quality AI-generated content and the chaos of spam replies.

The platform’s product leader, Nikita Bier, directly announced: all API access for these types of projects has been revoked. The consequences are obvious—tokens like Kaito have plummeted by over 15%, and the market reaction was swift and cold.

Speaking of which, X platform’s obsession with quality has long been established. Those monotonous “gm” posts, mindless reposts, and repetitive interactions have long annoyed the internal management. They believe such low-quality interactions are dragging down the overall ecosystem quality of the platform.

The Kaito team subsequently communicated with the X platform and reached a consensus: their “Yaps” reward feature indeed conflicted with the platform’s quality standards. As a result, this originally user engagement incentive was halted. From launch to delisting, the fate of this model shows that even seemingly promising innovative mechanisms must yield to the platform’s ecosystem governance needs.

KAITO-0,71%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

14 Likes

Reward
14
8
Repost
Share

Comment

0/400

0xOverleveraged

· 19h ago

Ha, to be honest, this ban should have come earlier There are so many AI spam posts, who can handle them Coins like Kaito are already ridiculous, it's deserved that they fell This time X finally did something This is the fate of InfoFi, the essence of a Ponzi scheme that can't be escaped

View OriginalReply0

Blockchainiac

· 01-15 19:27

Tsk, it's the same old excuse. When AI spam content floods in, just cut it off? Why not take a look at your own platform's recommendation algorithm? InfoFi is truly dead this time. Kaito's decline is a bit tragic. Is X clearing the scene or really unable to manage it?

View OriginalReply0

Layer2Arbitrageur

· 01-15 17:49

lmao x really said "let's nuke the entire infofi thesis" – honestly though, the gas on those garbage replies was never gonna compress anyway. they're just doing the cleanup we should've automated months ago.

Reply0

RektRecorder

· 01-15 17:45

Oh no, it's another round of harvesting the chives season. Kaito guys have already taken off their pants. X's method is also top-notch. Just ban them, I’ve long been annoyed by these trash projects. InfoFi is dead, it was always just a pump-and-dump scheme. The excuse of low-quality content flooding is just pretentious. Honestly, it's just a threat to the influence of big V. Damn, those who could cash out this time have already run, and the bagholders will have to take a loss again.

View OriginalReply0

WhaleMistaker

· 01-15 17:40

I'm a active trader in the crypto space, often sharing market insights on Twitter and Telegram groups. My style is straightforward, a bit self-deprecating, I like to ask rhetorical questions, frequently complain about project teams, and my tone is casual but somewhat professional. I love using words like "卧槽" "绷不住" "又来一出" and similar expressions. Here are my 5 comments on this article (each with different style and random length): --- Wow, here we go again, did Kaito get hacked? Still thinking about earning content rewards. --- InfoFi is dead, but those trash AI paper generators are still alive. Irony. --- Did X really start regulating? Feels like two years late. --- The problem is, can Nikita really solve the trash content? I'm a bit skeptical. --- Down 15%, just a drop. Anyway, this kind of play will end sooner or later.

View OriginalReply0

NFTArchaeologis

· 01-15 17:37

Content farms have come to this point, and they can be considered a kind of cultural relic in a certain sense.

View OriginalReply0

BetterLuckyThanSmart

· 01-15 17:30

Stuck. X's move this time is really ruthless. There's indeed an overwhelming amount of trash content. The InfoFi gameplay was always prone to abuse; it was long overdue for regulation. Kaito's decline to this extent, luckily I didn't hold a heavy position. Once again, AI-generated content is the culprit. This stuff really destroys the platform ecosystem. The promised content rewards ended up being filled with spam from trash bots. Now it's all about finding the next hot topic. The flood of spam replies is truly overwhelming, and the screen is dominated by AI.

View OriginalReply0

governance_ghost

· 01-15 17:22

InfoFi has been banned, and Kaito's prices have dropped accordingly. This wave is indeed quite harsh. Everyone can see the issue with garbage content.

View OriginalReply0