Kaito will replace Yaps at Kaito Studio after the X tightening of InfoFi Apps

The crypto analytics platform Kaito has made significant strategic changes following X (formerly Twitter) implementing stricter policies against reward-based applications. This decision has had a direct impact on the market, with the $KAITO token dropping by a notable percentage due to market reaction.

X Policy Change: Combating AI Spam Through Reward-Based Apps

X’s Head of Product Nikita Bier announced new policies banning applications that offer financial incentives to users for posting on the platform. This change is a direct response to the rise of “AI slop and reply spam” that has been creating issues within the platform’s ecosystem.

According to Nikita Bier, the company has also taken steps to revoke programmatic access from affected applications. Developers who were banned are exploring alternative platforms such as Threads and Bluesky to continue their operations. This action is part of X’s broader strategy to maintain content quality and reduce automated spam.

Kaito Yapper Community of 157,000 Members Highly Affected

Kaito’s product, known as Yaps, was designed to reward users who tweet about various projects and brands. The model gained significant support, especially in Korea, where thousands of users with large followings actively engaged on the platform.

Following the implementation of X’s new policy, the Kaito Yapper community, consisting of over 157,000 members, faced access restrictions on the platform. Blockchain investigator ZachXBT reported that the entire community was blocked after these policies came into effect. This change has posed a major challenge for the project, which relied heavily on X as its primary channel for user engagement.

New Kaito Studio: A More Traditional Creator Marketing Platform

Kaito founder Yu Hu recognized that models entirely based on unpermitted and incentivized content are no longer viable under the new platform restrictions. Instead, the project has pivoted strategically and introduced Kaito Studio, a more traditional tier-based creator marketing platform.

Kaito Studio focuses on direct brand-creator partnerships, more detailed analytics, and cross-platform distribution beyond X. The new platform encompasses popular social media channels like YouTube and TikTok, providing creators with broader opportunities for monetization and brand collaborations.

The founder assured that this transition will not affect other Kaito products, including Kaito Pro, API, Launchpad, and the upcoming Kaito Markets. The $KAITO token will continue to be an integral part of the new Studio model, although further details will be announced.

$KAITO Token Experiences Market Volatility

The market responded immediately to news of the policy change and product pivot. According to the latest blockchain analytics data, the $KAITO token declined due to shifts in market sentiment and uncertainty about the project’s new direction.

The current price has reached $0.36, with a 24-hour price change of -8.25%, indicating ongoing pressure on the token’s value. This volatility reflects investors’ concerns about how the transition will affect the long-term viability of the Kaito ecosystem.

The InfoFi Industry at a Crossroads

This entire incident highlights a larger tension within the Information Finance (InfoFi) sector. The industry is known for rewarding users for creating and sharing information and insights, a model that has attracted millions worldwide.

However, the rise of AI-generated content and automated reply spam has become an issue that major platforms can no longer ignore. X’s crackdown sets a precedent that other social networks may follow, potentially transforming the landscape of reward-based content platforms in the future.

Kaito’s transition from Yaps to Kaito Studio represents a broader industry maturation trend, where more sustainable and regulated approaches are becoming necessary for long-term growth and mainstream acceptance of cryptocurrency-related applications.