The team led by Nikita Bier, Product Manager at Twitter, has made a decisive move to combat spam on the platform. By updating the API policies, the platform has cracked down on fake interactions, impacting the value of altcoins like Kaito in the InfoFi category.
Immediate Impact on Altcoins
Twitter has implemented changes to its API (Application Programming Interface) policies, effectively banning all third-party applications that offer users rewards, points, or tokens in exchange for shares. This proactive measure targets crypto projects that flood users’ timelines with low-quality content under the guise of “tweet to earn rewards and airdrops.” As a result, applications using such reward systems will lose access to Twitter.
Among those affected, the Kaito Yapper community, which boasted 157,000 members on Twitter, has been banned. Following the announcement, the KAITO token price has plummeted by 17%, highlighting the significant repercussions of the new policy.
Statements from Nikita Bier
In a recent post, Nikita Bier explained, “We are revising our developer API policies. Applications that offer rewards for sharing on Twitter will no longer be allowed (also known as ‘InfoFi’). This has led to excessive AI-generated content and response spam on the platform.”
Bier further confirmed that access to the API for these applications has been revoked, promising users an improved experience soon as the bots realize they are no longer compensated.
Bier also extended an invitation to developers whose accounts have been terminated, offering assistance in transitioning their operations to Threads and Bluesky.
Post-announcement, KAITO Coin, one of the largest players in the InfoFi realm, saw its value drop to as low as $0.54.
Other altcoins were similarly impacted: COIKE decreased by 10%, LOUD by 10%, and LURKY by 9%.
The total market value of InfoFi altcoins, originally at $373 million, experienced a 10% decline following the revised API policy’s introduction.