X Shuts Down InfoFi Apps, Triggering KAITO Token Sell-Off and Scrutiny

• X revoked API access for reward-based posting apps, ending InfoFi activity over AI spam concerns.
• Kaito and Cookie DAO shut down incentive products, triggering bans and sharp token sell-offs.
• KAITO saw heavy selling and abnormal unstaking after claims of early awareness of the ban.

X has revoked API access for applications that reward users for posting content, effectively banning so-called InfoFi platforms from operating on the site. The decision was announced by X head of product, Nikita Bier, who said incentive-based posting had driven a surge in low-quality, AI-generated replies and spam, prompting a policy revision aimed at improving user experience.

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 …

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