X API Ban Kills Kaito and InfoFi Crypto Projects: The Death of AI Slop?

X has banned applications that reward users for posting on the platform by revoking their API access, a move targeting "InfoFi" projects. Nikita Bier, X's product lead, stated this change was necessary to curb "a tremendous amount of AI slop & reply spam." This decision immediately caused InfoFi tokens, including Kaito and Cookie, to drop sharply as their primary growth engine was eliminated. Kaito announced it would sunset its incentivized Yaps system and pivot to Kaito Studio, while Cookie shut down its Snaps creator campaign system. InfoFi projects monetized attention on X by rewarding users for engagement, but this model was increasingly dominated by bot networks generating low-quality, AI-driven content, which critics argued made the platform nearly unusable. Many in the crypto community welcomed the crackdown, viewing it as a necessary reset to restore organic discourse on the platform.

(Source：BeInCrypto)