X API Ban Kills Kaito and InfoFi Crypto Projects: The Death of AI Slop?
X has revoked API access for apps that reward users for posting on the platform, effectively banning so-called “InfoFi” projects that paid users to generate engagement.
Product lead Nikita Bier said the model created “a tremendous amount of AI slop and reply spam,” adding that the changes should quickly improve the quality of content once automated bots stop getting paid.
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…
The decision triggered an immediate sell-off across InfoFi tokens. Kaito, Cookie DAO, BubbledMaps, Loud, Arbus and several others fell sharply within hours as traders priced in the loss of their core distribution and growth engine.
In response, Kaito founder Yu Hu confirmed the company will sunset Yaps and its incentivized leaderboards and pivot to a new product called Kaito Studio.
InfoFi Tokens Collapse. Source: CoinGecko
Cookie, another InfoFi platform, also announced it would shut down Snaps, its creator campaign system, after discussions with X about API and usage policies.
The company said it remains an Enterprise API customer but could not operate reward-based posting programs under the new rules.
Cookie has packed up
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