KAITO drops 20% as X blocks InfoFi apps to fight spam
KAITO's token value dropped 20% after X announced it would block apps that reward users for posting, known as 'InfoFi' apps, to combat spam.Summary
The native token KAITO, associated with the InfoFi protocol Kaito AI, experienced a 20% drop in value, falling from $0.70 to $0.56 following an announcement by X regarding new developer API policies. X's Head of Product, Nikita Bier, stated that the platform is blocking apps that reward users for posting—termed 'InfoFi' apps—because they have led to a significant amount of AI-generated spam and 'slop.' X has revoked API access for these applications, and Bier suggested that the user experience should improve as bots lose their payment incentives. Furthermore, the sell-off impacted Kaito AI's NFT collection, Yapybaras, whose floor price collapsed by over 50% to 0.21 ETH. Bier concluded by suggesting affected developers transition their businesses to Threads and Bluesky.
(Source：Crypto Briefing)