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X banned apps that reward users for posting
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InfoFi projects lost API access
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Kaito’s token dropped sharply after the announcement
X has updated its developer API policies to block applications that pay users for posting content on the platform, a move that hit InfoFi crypto projects hard.
The platform said it revoked API access from apps that financially incentivize engagement, citing a rise in spam and low-quality automated content. The change was framed as an effort to improve the user experience by discouraging paid posting behavior.
Following the announcement, the native token of the InfoFi project Kaito dropped sharply, losing more than 10% in a short period. Kaito aggregates crypto-related posts on X to highlight trending narratives across the market.
The company behind Kaito acknowledged the shift and said it would sunset its incentive-based features, including reward-driven leaderboards. It plans to transition toward Kaito Studio, a more traditional marketing platform with tier-based services rather than token incentives.
Kaito’s leadership said past efforts to reduce spam through tighter rules had limited success, especially as platform-wide algorithm changes and similar incentive models spread across crypto social platforms. The API ban appears to mark a broader crackdown on monetized engagement across X.
