Kaito token plummets after X revises API policies to ban InfoFi crypto projects

X, formerly known as Twitter, is revising its developer API policies to no longer allow apps that reward users for posting on the social media platform.

"We have revoked API access from these apps, so your X experience should start improving soon (once the bots realize they’re not getting paid anymore)," X product lead Nikita Bier wrote in a post on Thursday.

The native token of the InfoFi network, Kaito, plummeted more than 10% immediately following Bier's post. The Kaito platform aggregates posts from prominent crypto accounts on X to show what topics are gaining traction across the community.

InfoFi has led to a "tremendous amount of AI slop & reply spam" on the X platform, Bier said.

"If your developer account was terminated, please reach out and we will assist in transitioning your business to Threads and Bluesky," he said.

KAITO traded around $0.59 at publication, down 14.5% according to The Block's price data. The token has a market cap of around $140 million with a fully diluted valuation of around $586 million. KAITO's FDV peaked near $2 billion shortly after its initial airdrop in February 2025.

Kaito then announced that it would sunset Yaps and incentivized leaderboards to launch Kaito Studio. Kaito Studio will be much closer to a tier-based traditional marketing platform, according to Kaito founder Yu Hu.

"Over the past year, we experimented with tighter eligibility, higher threshold in leaderboards, social + onchain filters and different incentive designs," Hu wrote in a post on X. "However - intertwined with platform-wide X algorithm changes, and other InfoFi projects going live with varying degrees of thresholds (some with none), issues of low quality and spam largely remained across the broader crypto space."