Crypto Chaos: X API Ban Turns Kaito and InfoFi Projects into Digital Ghost Towns!

In a shocking twist worthy of a daytime soap opera, X has pulled the rug out from under apps that dared to reward users for their posts. Yes, folks, it’s a full-blown ban on “InfoFi” projects-those cheeky little entities that paid users to create engagement. How dare they? 🎭

Nikita Bier, the product lead with a name that sounds like it was plucked straight from a Russian novel, lamented that this model birthed “a tremendous amount of AI slop and reply spam.” With the bots now getting the boot (not to be confused with booting up your computer), he claims that the quality of content should skyrocket. Apparently, all it takes is a little corporate-level culling to bring back the golden age of genuine tweets. Who knew? 🤷‍♂️

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

InfoFi Crypto Projects Collapse

As expected, the market reacted like a drama queen discovering that their favorite show has been canceled. The sell-off across InfoFi tokens was immediate and painful. Kaito, Cookie DAO, BubbledMaps, Loud, Arbus-oh the humanity! All fell faster than a college student after a night of binge drinking. 🍻

In a stunning act of corporate survival, Kaito founder Yu Hu announced they would sunset Yaps and its incentivized leaderboards and shift gears to a fresh new product called Kaito Studio. Because nothing screams innovation like pivoting to a new concept when the old one flops, right? 🥴

Meanwhile, Cookie, another InfoFi darling, decided to close down Snaps-its creator campaign system-after a heart-to-heart with X about… well, just everything really. They claimed they’re still an Enterprise API customer, but good luck operating reward-based programs under the new rules. It’s like trying to run a hot dog stand in a vegan festival. 🌭❌

Crypto Twitter Can Breathe Again

Oh, the sweet smell of freedom! The market’s reaction was as quick as a cat meme going viral. InfoFi tokens were designed to capitalize on attention on X, tracking every post, reply, and engagement like a nosy neighbor. Users generated visibility and in return received tokens or points, which turned out to be about as valuable as Monopoly money. 💰

Kaito’s Yaps system was apparently the heavyweight champion of this model, attracting hundreds of thousands of users-particularly in South Korea. But as they say, what goes up must come down, and Kaito’s KAITO token launch in early 2025 was met with enough backlash to make a rubber band snap. Users discovered that Yaps points converted into much smaller token allocations than they’d hoped. Surprise! 🎉

Critics had a field day pointing out the insider-heavy tokenomics and the rapid post-airdrop sell-offs that sent the token spiraling downwards. Trust in the incentive structure? Gone, like socks in a dryer. 🧦

With AI-generated content drowning out authentic voices, those rewards for volume and engagement became a battleground for bot networks and low-quality farms. Genuine research and commentary? More like a needle in a haystack. 🔍

X’s recent API crackdown is like a hard reset button for the crypto universe. Many traders and creators are cheering for this move, insisting that incentive farming had hollowed out any semblance of organic crypto discourse. Who doesn’t love a good reset? It’s like cleaning out the fridge after too long-refreshing yet slightly nauseating. 🥴

Now, the broader InfoFi sector faces an existential crisis as the attention economy on X shifts from open tokenized rewards to carefully curated partnerships. Welcome to the new era! Let’s hope it’s one that doesn’t involve bot armies fighting for the last slice of digital pizza. 🍕

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2026-01-15 22:59