X Tightens InfoFi Regulations: Kaito Turns Off Yaps, KAITO Token Corrected

Industri InfoFi (Information Finance) has just experienced a serious shakeup. Platform X has changed its policies to ban applications that provide compensation to users for their posts, triggering a series of domino effects across the crypto ecosystem. Kaito, an analytics platform based in the InfoFi industry, has become one of the first parties severely impacted by this new policy.

Platform X Changes Policy, AI Spam Becomes the Main Trigger

Nikita Bier, head of product at X, announced significant changes to the platform’s standards. This decision was driven by increasing spam generated by artificial intelligence and irrelevant replies. X will no longer allow third-party applications to incentivize users to add content on the platform.

This aggressive move includes revoking programmatic access for affected developers. Bier suggested that developers whose contracts are terminated may consider migrating to alternative platforms such as Threads (owned by Meta) and Bluesky, which still offer incentive-based models or more flexible ecosystem support.

Yaps Shut Down, Incentive-Based Model in InfoFi Under Trial

Kaito’s Yaps product is one of the direct victims of this new policy. Yaps allows users to earn rewards by tweeting or retweeting about certain brands or projects. Although this feature attracted hundreds of thousands of influential users, especially in Korea, the model also became a channel for low-quality content and AI spam to flood the platform.

Yu Hu, founder of Kaito, admitted that the fully decentralized, financially incentivized distribution model “is no longer viable” under current platform regulations. The decision to cease Yaps was made after in-depth discussions with X management, reflecting a new reality for InfoFi applications operating on major social media platforms.

Kaito Yapper Frozen, Community Shocked and Token Drops

The immediate impact was felt within the user community. The Kaito Yapper community, which has around 157,000 members, was frozen on X following the policy change announcement. Blockchain researcher ZachXBT verified this event and tracked the market’s quick reaction.

The $KAITO token responded with a significant decline. Following the Yaps shutdown announcement, the token’s value dropped, reflecting investor uncertainty about Kaito’s ecosystem future. Recent data shows the $KAITO price at $0.35 with a 24-hour change of +1.81%, indicating stabilization after the initial shock.

Pivot Strategy: Kaito Studio Takes Over with New Model

Kaito is not standing still. The company announced it will launch “Kaito Studio,” a creator marketing platform adopting a traditional tier-based model. Unlike Yaps, Kaito Studio focuses on selective brand-creator partnerships, providing in-depth analytics, and facilitating cross-platform content distribution outside of X, including YouTube and TikTok.

This strategy reflects an adjustment to tighter regulatory realities while maintaining Kaito’s core service values. The company emphasizes that this transition will not disrupt other products like Kaito Pro, API, Launchpad, or upcoming Markets. The $KAITO token will continue to play a role in the new Studio ecosystem, although details will be announced later.

InfoFi Ecosystem Faces Platform Regulation Challenges

The shutdown of Yaps marks a significant turning point for the entire InfoFi industry. The incentive-based model that rewards users for creating information and insights (the core definition of InfoFi) now faces serious questions about long-term sustainability. If major social media platforms continue to restrict InfoFi applications, this model will need to evolve or migrate to more open platforms.

X’s decision also raises questions for thousands of similar applications relying on incentive models. The previously rapidly growing InfoFi industry must reevaluate its business strategies, just as Kaito has. This period serves as a true test of the viability of monetizing information within increasingly regulated centralized social media ecosystems.