X Bans InfoFi Apps as Kaito Sunsets Yaps, Pivots to Creator Platform

X banned InfoFi apps, platforms that reward users with crypto tokens for posting, ending their API access and removing a key tool crypto projects have used to drive engagement on the platform.

The policy revokes developer connections immediately, according to Bier’s announcement. Bier described the targeted content as AI-generated spam and reply noise that has degraded the user experience. He added that affected developers may request help transitioning their businesses to Threads and Bluesky.

Blockchain investigator ZachXBT noted the ban affected the 157K-member Kaito Yappers community, a group that earned tokens by posting about crypto projects. Nansen CEO Alex Svanevik called the decision a rescue for the crypto Twitter community.

KAITO Token Drops 15% on Ban News

KAITO fell 15.36% to $0.57 following the announcement, according to CoinGecko data. Trading volume jumped 115% to $138.5 million as holders repositioned.

KAITO token price chart 1H | Source: TradingView

The token now trades 80% below its all-time high of $2.88 reached in February 2025. Weekly volume reached $521 million, up 163% from the prior week.

Kaito Announces Business Model Pivot

Kaito founder Yu Hu responded by announcing the company is sunsetting Yaps and its incentivized leaderboards. The replacement product, Kaito Studio, will operate as a tier-based marketing platform where brands selectively partner with creators who meet defined criteria.

Yu Hu said the decision followed direct discussions with X, adding that a fully permissionless distribution system is no longer viable. Kaito Studio will expand beyond X to YouTube and TikTok, and beyond crypto into finance and AI verticals.

Korea is Kaito’s largest market by user base, according to Yu Hu. The KAITO token will continue to play a role in Studio, with details to follow.

Bot Spam Crisis Preceded Ban

The policy follows a documented spike in automated posting. CryptoQuant CEO Ki Young Ju noted that bots generated 7.75 million crypto-related posts on Jan. 9, a 1,224% increase his firm attributed to InfoFi activity.

The InfoFi model, which includes Kaito and quest-based reward platforms like Galxe, has drawn criticism for encouraging low-quality content and artificial engagement.

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