X cuts down InfoFi projects with AI-generated content

X, the most widely used app for crypto projects, is changing its API access policy. InfoFi projects, which proliferated non-organic bot content, will be cut off from the social network. 

X cut API access to InfoFi projects, after a period of increased non-organic traffic with AI-based content. InfoFi was another use case for on-chain activity, which still relied on the traditional X feed. Users were rewarded for posting, and ended up overloading the social media platform with AI-generated content. 

In another round of reinventing the X relationship with crypto content, the site’s product manager, Nikita Bier, explained the changes coming for InfoFi projects. The changes effectively ban rewards for posting, especially for explicit promises to earn points or airdrop access.

The changes come just a day after X boosted exposure to crypto projects through cashtags, offering more accurate labeling for projects and tickers.  

The changes came after the crypto community accused X of decreasing reach for crypto projects, apps, and influencers. In the past year, some projects complained of lower reach, while X tried to fight scams and low-quality content. 

InfoFi tokens crash after X ban

Immediately after the news of the API ban, almost all InfoFi tokens wiped out a part of their value. The overall market is small, valued at under $400K, reflecting the relative novelty of InfoFi projects. 

In the past day, the whole token class crashed by 11.6%, with near-vertical losses immediately after Bier’s statement. KAITO, one of the leading InfoFi and mindshare apps, lost 15.2% to trade near its lowest range at $0.57.

ZachXBT criticized InfoFi campaigns

ZachXBT has been tracking various InfoFi campaigns, believing they harmed the crypto community rather than popularizing the projects. 

While Kaito offered useful data on influence, it also encouraged frequent posting that bloated the content in the crypto space. 

InfoFi creation followed a previous attempt to rebuild social media for niche projects. However, InfoFi apps decided to use the exposure of X, the most widely used social network. 

The recent API ban showed that even projects claiming to be decentralized relied heavily on Web2 rails for their exposure. 

Before the ban, InfoFi projects spent widely on API access and encouraged posting as a way of farming airdrop points. The Kaito airdrop was the most notorious case, later establishing multiple circles of influencers. 

Soon after the ban, InfoFi faced an uncertain fate. For some, Kaito and other apps were doomed to be abandoned, similar to FriendTech apps. For others, InfoFi would seek ways to adapt and find more favorable platforms or new tasks for point farming, such as testnet usage.

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