Key Developments
Kaito AI, a platform focused on rewarding users for content creation, has been significantly impacted by X's recent decision to ban "InfoFi" apps. This policy change led to a substantial decrease in the value of KAITO tokens and necessitates a strategic shift for the Kaito team.
The X Policy Change and Immediate Impact
Kaito founder Yu Hu disclosed on January 16 that his team was unaware of X's policy adjustment banning rewarding 'InfoFi' apps until it was announced publicly on January 15. The policy change significantly affected KAITO token's value, dropping nearly 20%, undermining Yaps' feature and raising concerns about potential prior knowledge by Kaito.
Kaito AI faced unexpected changes after X's decision to ban InfoFi apps, which reward users for posting, became public. On January 15, product manager Nikita Bier announced the policy shift, which significantly affected Kaito's business model.
Kaito founder Yu Hu stated on January 16 that the team learned of X's announcement the same time as the public. He emphasized that previous legal notices from X were resolved amicably, giving no cause for prior panic.
"We learned of the policy shift simultaneously with the public on January 15."
Yu Hu, Founder of Kaito AI
Impact on KAITO Tokens
The immediate effect was a sharp drop in the KAITO token's price, decreasing 20% from $0.70 to $0.55. Yu Hu clarified a recent transfer of 5 million tokens had no link to insider knowledge.
The ban reflects X's attempt to reduce platform spam, but it has forced Kaito to shut down its Yaps and incentive leaderboard. Kaito now aims to develop Kaito Studio for cross-platform use. This transition is in line with commentary shared on market trends by Punk9277.
Future Strategic Directions
The financial implications included significant token devaluation, raising concerns among investors. Kaito's pivot to Kaito Studio reflects a strategy to adapt to new market environments by 2026.
The potential regulatory outcome suggests a significant shift in content reward applications. Historical approaches indicate Kaito might successfully adapt through new platform strategies, although earlier collaborations with X won't hold precedent. The concerns were amplified by ongoing crypto investigations, as discussed by ZachXBT.