Kaito (KAITO) Drops 20% as X Bans InfoFi Apps and Revises API Policies

2 mins mins

In Brief

Kaito token plunges 20% after X bans apps rewarding users for posts.
X revokes API access for InfoFi projects to tackle spam and AI content.
Developers offered transition support to platforms like Threads and Bluesky.

X has revised its developer API policies to block apps that reward users for posting content on the platform. This move aims to reduce spam and improve the overall user experience.

Policy Change Triggers Market Reactions

The new policy, announced by X’s Head of Product Nikita Bier, prohibits apps that financially reward users for posting. As a result, several InfoFi projects saw their tokens crash, with Kaito’s native token falling by over 20%.

We are revising our developer API policies:

We will no longer allow apps that reward users for posting on X (aka “infofi”). This has led to a tremendous amount of AI slop & reply spam on the platform.

We have revoked API access from these apps, so your X experience should…
— Nikita Bier (@nikitabier) January 15, 2026

X has revoked API access for these apps, citing the surge in automated spam and low-quality content. The policy change caused a sharp decline in token values, with Kaito dropping from $0.70 to $0.56, and other tokens like COOKIE and LOUD also seeing significant losses.

Transition Support for Affected Developers

X has committed to supporting developers whose apps are affected by the policy change. Bier mentioned that developers could transition their projects to other platforms like Meta’s Threads or Bluesky.

The market reacted swiftly, with InfoFi projects such as Kaito and Cookie DAO losing millions in value. While the crackdown aims to improve user experience, it has disrupted the broader InfoFi ecosystem, with the total market value of the sector dropping by 11.5%.

X’s decision to block InfoFi apps marks a clear shift in its approach to platform management. By taking action against projects that financially incentivize user activity, the company seeks to reduce spam and improve content quality.

KAITO Price performance | Source: CoinMarketCap

At press time, Kaito (KAITO) is currently valued at $0.57. Over the last hour, its price has decreased by 3.5%, by 20.25% in the last 24 hours, and by 27.8% over the past 7 days.

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