Policy Change to Combat Spam and Low-Quality Engagement
Twitter (formerly X) has implemented a significant alteration to its developer API policies. This move is intended to reduce the prevalence of spam and low-quality engagement on the platform. Consequently, applications that reward users for sharing content have had their API access revoked.
Nikita Bier, X's Product Leader, announced the change, stating, "We removed API access for these applications. Your X experience will start to improve shortly after the bots realize they are no longer receiving payments." Bier further explained that the model referred to as "infofi" (information finance) had contributed to "largely AI-driven low-quality content and response spam" on the platform.
Market Impact on Kaito Token
Following this announcement, KAITO, the native token of the infofi network Kaito, experienced a decline of over 10% in market value. Kaito is recognized as a platform that analyzes posts from prominent cryptocurrency accounts on X to identify trending topics within the community.
Support for Affected Teams and Kaito's Strategic Shift
Bier also indicated that teams whose developer accounts were terminated could receive assistance during their transition to alternative platforms such as Threads and Bluesky.
Concurrently, Kaito has announced a strategic transformation. The company has declared the discontinuation of its reward-based ranking and "Yaps" program, marking the beginning of the Kaito Studio era. In a statement, Kaito explained that open and permissionless reward models proved inadequate in addressing quality and spam issues due to algorithm changes and declining industry standards. The new Kaito Studio will introduce a more traditional and layered marketing model, facilitating collaborations between brands and content creators who meet specific criteria.
Kaito emphasized that this revised structure is designed to enable advanced analytics, provide multi-platform access across X, YouTube, TikTok, and other services, and expand into non-crypto verticals. The company anticipates a move away from a solely crypto-focused structure by 2026, embracing a broader content creator economy that includes finance, artificial intelligence, and other sectors. The announcement also mentioned that the KAITO token will retain a role within Kaito Studio, with further details to be released at a later time.