Kaito Sunsets Yap as X Bans Payments for ‘AI Slop’

X, formerly Twitter, banned applications that reward users for posting content, a move X's head of product, Nikita Bier, stated was necessary to reduce the amount of "AI slop" and reply spam on the platform. In response to the API access revocation, Kaito.ai announced it would sunset its "Yaps" product, which rewarded users for posting on X, leading its KAITO token to fall by nearly 18%. Similarly, Cookie DAO wound down its "Snaps" product, causing its COOKIE token to drop over 15%. These reward systems often encouraged the use of AI to generate content. The broader InfoFi crypto market cap also saw a 13% decline. Furthermore, unusual activity among KAITO stakers, with significantly higher token unstakings than normal, led to speculation that some insiders may have had advanced knowledge of X's impending ban.

(Source：Cointelegraph)