Pressure from Spam prompts Kaito to stop Yaps; Token drops 17%

The spam problems generated by AI have become the main trigger for Kaito to shut down their Yaps program. X has implemented strict policies against applications that provide financial incentives to users for their posts, a decision that has had a significant impact on the InfoFi ecosystem and caused the $KAITO token value to drop around 17%.

AI Spam Causes X to Change Policies

Nikita Bier, head of product at X, announced that the platform will no longer allow applications that pay users to create content. The main reason is the increasing volume of spam and automated responses generated by AI. The platform has revoked programmatic access for affected developers, forcing them to seek alternatives on platforms like Threads and Bluesky.

This policy is a direct response to the rapidly growing phenomenon where incentive-based applications create environments filled with low-quality spam content, disrupting normal user experience.

InfoFi is Short for: How Reward-Based Models Create Spam

InfoFi, or Information Finance, is an industry that rewards users for creating information and insights. This model is designed to empower creators, but in practice, a copyright-free model driven entirely by financial incentives has led to uncontrollable amounts of spam.

Kaito’s Yaps product, for example, allows users to earn rewards by sharing tweets about specific projects or brands. While attracting hundreds of thousands of active users with large followings, especially in Korea, this product also contributes to the surge of low-quality content on the platform.

Kaito founder Yu Hu admits that the fully permissionless distribution model driven by incentives is “no longer viable” under X’s current policy restrictions.

Immediate Impact: Kaito Community Sealed and Token Value Eroded

According to blockchain investigator ZachXBT, the Kaito Yapper community on X, which includes about 157,000 members, was blocked immediately after the policy change was announced. The $KAITO token responded with a drop of around 17% following the announcement.

Recent data shows the token price at $0.35 with a 24-hour change of -0.62%, reflecting ongoing market pressure due to strategic uncertainty.

Kaito Studio: Transition to Partnership-Based Marketing Model

In response to changing regulatory environments, Kaito has announced plans to replace Yaps with “Kaito Studio,” a creator marketing platform adopting a more traditional tier-based approach.

Kaito Studio will focus on:

• More selective and quality brand-creator partnerships
• In-depth analytics to measure campaign performance
• Cross-platform distribution outside of X, including YouTube and TikTok

The company emphasizes that this transition will not affect other products, including Kaito Pro, API, Launchpad, or upcoming Markets products. The $KAITO token will continue to play a role in the new Studio model, with implementation details to be announced later.

This strategic shift marks industry recognition that spam-based models with indiscriminate incentives are unsustainable, encouraging InfoFi players to innovate in more responsible ways that focus on quality rather than volume.