Kaito Stops Yaps as X Restricts Paid Incentive Apps, Token Slides 9.81%

Kaito crypto analytics platform announces the closure of Yaps product and incentive-based leaderboard mechanism, following the tightening policy changes from X against applications that provide compensation to users for their posting activities. This decision reflects the challenges faced by the InfoFi ecosystem, an abbreviation for Information Finance, where user information contributions are rewarded with financial incentives.

Background of X Policy and the InfoFi Industry

X has implemented new regulations prohibiting applications from offering direct financial incentives for posts, primarily due to the increasing AI-based spam and repetitive content flooding the platform. Nikita Bier, X’s head of product, confirmed that programmatic access has been revoked from developers affected by this, and they may consider migrating to alternative platforms like Threads and Bluesky.

The InfoFi industry, which stands for Information Finance, is growing by attracting hundreds of thousands of users in Korea and other regions interested in earning income by sharing market insights and comments on crypto projects. Yaps from Kaito is a prime example of this model, where users earn rewards by retweeting about specific brands or projects.

Yaps Product and Impact on Kaito Community

Yaps is essentially an incentive-based mechanism that allows users to earn compensation for content they post on X about selected topics or projects. While it attracts large-scale participation, this model also triggers an increase in AI-generated content volume, aligning with platform concerns about content quality and originality.

The Kaito Yapper community, consisting of approximately 157,000 members, experienced a ban on X following these policy changes. Blockchain researcher ZachXBT verified that the direct impact occurred among active community users, while the $KAITO token responded with a decline of about 9.81% in the last 24 hours.

Strategic Transition to Kaito Studio

Kaito founder Yu Hu stated that the decision to cease Yaps was made after in-depth discussions with X, acknowledging that the unpermissioned distribution model driven purely by incentives is “no longer viable” given current platform constraints and requirements.

Kaito will launch “Kaito Studio,” a creator marketing platform adopting a more traditional and selective tiered approach. The main focus of Kaito Studio is to facilitate structured brand-creator partnerships, provide in-depth analytics, and support cross-platform content distribution including YouTube and TikTok, not just X.

The company emphasizes that this transition will not affect other product lines such as Kaito Pro, API, Launchpad, and upcoming Markets products. The $KAITO token will continue to play a role in the new Kaito Studio model, although specific details about integration will be announced later.

Implications for the InfoFi Industry

This change marks an important moment for the Information Finance industry, demonstrating that pure incentive-based business models require adjustments as major social media platforms incorporate stricter controls against spam and AI-based content manipulation. Kaito chooses to adapt and grow with more sustainable strategies rather than fighting platform policy restrictions.