InfoFi ecosystem faces sell-off after X bans rewarded posts

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Yaroslav Dmytrenko

15.01.2026

InfoFi ecosystem faces sell-off after X bans rewarded posts — X API changes put pressure on InfoFi crypto tokens

Tokens across the InfoFi ecosystem are under pressure as social media platform X cracks down on spam and revises its API policy for applications that reward users for posting content.

X, formerly known as Twitter, is revising its developer API policy to prohibit apps that incentivize users to post on the platform. According to X’s Head of Product Nikita Bier, such applications have led to “a massive amount of spam and AI-generated replies” on X.

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“We have revoked API access from these apps, so your experience on X should start improving soon (once the bots realize they are no longer being paid),” Bier wrote in a post on Thursday.

A business model in need of change

The native token of the InfoFi network, Kaito, fell more than 10% immediately after Bier’s post and later extended losses by another 5%. At the time of writing, KAITO was trading at $0.57 and had dropped to 197th place among cryptocurrencies by market capitalization.

KAITO price dynamics over the past 24 hours. Source: CoinMarketCap

Kaito aggregates posts from prominent crypto accounts on X to highlight trending topics within the community. After its launch, the project relied on incentivized leaderboards that rewarded user activity. However, according to co-founder Yu Hu, Kaito Studio is now shifting toward a model closer to a traditional marketing platform with a multi-tiered structure.

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“Over the past year, we’ve experimented with stricter curation criteria, higher leaderboard thresholds, social and on-chain filters, and different incentive designs,” Hu wrote in a post on X, acknowledging that low-quality content and spam issues across the broader crypto space largely persisted.

Kaito represents the most visible example of a crypto token reacting to changes in X’s policy, but it is not the only one.

CookieDAO has also shut down its “Snaps” mechanism, which rewarded posts and influence, following X’s ban — signaling significant pressure on the project. The token dropped 18% within 24 hours.

Other projects reported to have lost access to Elon Musk’s social platform or potentially at risk include Xeet, Galxe, Klout, Stay Loud, and others. Tokens associated with these platforms may also face downside pressure in the near term.

As we wrote, Musk to turn X into super app

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