InfoFi 'Yaps' Kaito Halted: How the Platform is Adapting to X Restrictions

A new wave of restrictions on incentive applications on X forces Kaito, a leading crypto analytics platform, to sacrifice one of its flagship products. The closure of Yaps marks a significant moment for the InfoFi industry—short for Information Finance—that has garnered considerable attention but also faces increasing regulatory pressure. The KAITO token experienced a significant correction following this announcement, reflecting the tangible impact of platform policy changes on the crypto ecosystem.

What is InfoFi and Why Did X Ban It?

InfoFi, or Information Finance, represents a business model where users receive financial compensation for creating and sharing high-value content, insights, and information. Kaito Yaps is one of the most well-known implementations of this concept, allowing users to earn rewards by making posts—particularly tweets—about specific crypto projects or brands.

However, this incentive-based approach has created unforeseen problems. Nikita Bier, head of product at X, announced that the platform officially bans applications that pay users for their posting activities. The main reason is simple yet critical: a drastic increase in spam generated by AI and automated responses that degrade user experience. Bier confirmed that programmatic access has been revoked from all affected applications under this policy.

KAITO Token Drops 17% After Yaps Closure Announcement

Market impact was immediate and measurable. According to blockchain researcher ZachXBT, the Kaito Yapper community, consisting of about 157,000 members, was blocked on X following the policy change. Market reactions were also tangible: the $KAITO token plummeted around 17% on the day of the announcement, demonstrating how social platform decisions can significantly affect crypto asset valuations.

However, the situation has begun to stabilize. Based on the latest data as of February 1, 2026, KAITO is trading at $0.38 with a 24-hour movement of +0.18%, indicating that the market is starting to absorb the long-term impacts of these changes and is considering the adaptive strategies offered by Kaito.

Kaito Studio: A Survival Strategy in the Era of Application Restrictions

Rather than simply surrendering to the new restrictions, Kaito announced an ambitious strategic transition. Founder Yu Hu stated that the company has decided to replace Yaps with “Kaito Studio”—a creator marketing platform adopting a more traditional and selective model.

Kaito Studio focuses on brand-creator partnerships that are selective, equipped with in-depth analytics and cross-platform content distribution. Unlike Yaps, which relied on mass incentive systems on X, Studio will operate within a broader ecosystem, including YouTube, TikTok, and other platforms. This approach shows that Kaito not only accepts X’s limitations but also sees them as an opportunity to diversify.

Yu Hu emphasized that the “permissionless” and “pure incentive-based” model driving Yaps is no longer viable under current platform constraints. This decision reflects a mature realization: sustainable growth must be built on a more stable foundation and in coordination with platform providers, not against them.

Kaito Ecosystem Continues to Operate, While KAITO Token Remains Relevant

Kaito affirms that this transition is limited to Yaps and will not affect other flagship products. Kaito Pro (premium analytics platform), API, Launchpad, and upcoming Markets will all continue to operate normally. This is important because it shows that the company views Yaps not as core business but as a growth channel that can be adjusted.

The $KAITO token will continue to play a role in the Kaito Studio economy. Although details of the reward mechanisms and token use cases have not been fully announced, this clarity is a positive signal for asset holders that the long-term vision remains intact.

The Future of InfoFi: Between Innovation and Regulation

Kaito’s experience with X restrictions offers valuable lessons for the entire InfoFi industry. Models relying on mass rewards and per-post incentives are attractive but have proven vulnerable to abuse and platform pressure.

The closure of Yaps may not be the end of InfoFi but rather its evolution. Platforms like Threads and Bluesky, offering alternatives to developers deployed from X, show that platform competition remains open. However, Kaito’s move toward a more structured, brand-partnership-based model—rather than mass incentives—may serve as a new template for the sustainability of InfoFi in the future.

With KAITO’s price movements stabilizing, the market seems ready to embrace a new narrative of adaptation and measured growth, rather than being trapped in the nostalgia of Yaps’ rapid rise.