X’s API Policy Shift Causes KAITO Token to Plummet

X revised its API policy, impacting apps rewarding users for posts.

The social network X has revised its policy on the use of API by third-party developers, restricting applications that rewarded users for posts. This was announced by the platform’s head of product, Nikita Bier.

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

This segment of projects, mainly in the cryptocurrency space, has been dubbed InfoFi. According to Bier, its popularity has led to the spread of “a tremendous amount of AI slop and reply spam” on X.

“We have revoked API access from these apps, so your experience on the social network should soon improve (once the bots realize they are no longer being paid),” he added. 

Following the announcement of these changes, the native token of one of the most popular InfoFi platforms, Kaito (KAITO), plummeted nearly 20%—from $0.7 to $0.55.

The project uses AI to analyze on-chain data and social media sentiment. Additionally, Kaito offered the ability to earn points (yaps) for posts on X about cryptocurrency. These points were converted into KAITO. 

The revocation of API access for developers has completely devalued this feature. 

Kaito’s founder, Yu Hu, announced that the platform will abandon Yaps and other related solutions. Instead, a new direction for marketing promotion—Kaito Studio—will be launched.

A project representative also acknowledged the issue of spam and bots:

“After discussions with X, it was agreed that a fully decentralized content distribution system is no longer viable and does not meet the needs of high-quality brands, serious content creators, or X as a platform.”

Back in January, Bier announced “smart tickers” with cryptocurrency and stock prices on X.