Is X Banning Crypto? Elon Musk Faces Backlash Over Tokenized Engagement Crackdown and AI Slop

Elon Musk's platform X is restricting applications that financially incentivize user activity through tokenized engagement, a model often called "InfoFi," leading to criticism from the digital asset community. Nikita Bier, X's head of product, stated this policy change was implemented because these models contributed to spam and low-quality content, including "AI slop." API access was revoked for affected projects, causing tokens like Kaito's to drop sharply. While some users welcomed the crackdown on repetitive posting, others argued that legitimate creators relied on these token incentives since X's native creator payouts are low. This policy shift occurs while Musk's AI chatbot, Grok, faces heightened regulatory scrutiny globally over its ability to generate manipulated and sexualized images, prompting xAI to restrict Grok's image-editing capabilities. Concurrently, X continues developing crypto-adjacent features like "Smart Cashtags" to link posts to live market data.

(Source：CCN)