Elon Musk’s X Targets InfoFi Projects in Major Policy Shift
In a decisive move, Elon Musk’s platform X (formerly Twitter) announced significant changes to its developer API policies, targeting projects that incentivize user activity with digital assets. This update could reshape the dynamics of social media monetization and crypto-related applications.
Head of Product Nikita Bier stated on January 15, 2026, that X will cease to allow apps encouraging users to post in exchange for digital rewards. These so-called ‘InfoFi’ projects have reportedly led to an influx of bot activity and AI-generated spam, disrupting the user experience on the platform.
Understanding the ‘AI Slop’ Backlash
According to Bier, these InfoFi projects not only cluttered timelines but also created an ecosystem rife with “AI slop” and “reply spam.” In response, X has revoked API access for these apps, signaling a crackdown on systems that exploit the platform for monetary gains.
“We will no longer allow apps that reward users for posting on X. This has led to a tremendous amount of AI slop & reply spam on the platform.” – Nikita Bier
Ripple Effects on the Crypto World
The announcement had an immediate impact on projects like Kaito, a prominent player in the InfoFi space. Following X’s policy update, Kaito’s native token plunged by over 15% within 30 minutes, reflecting the market’s reaction to the platform’s tighter restrictions.
Transition Support for Affected Developers
To address disruptions faced by developers, X extended an offer of support for transitioning to alternative platforms such as Meta’s Threads or Bluesky, a decentralized social media alternative. This gesture signals Musk’s acknowledgment of the sweeping influence such policy changes may have.
While some developers are exploring these alternative platforms, users on X are anticipated to experience a cleaner, more streamlined experience as bot activity declines. These changes represent a step towards restoring authenticity and meaningful interaction on the platform.
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Stay tuned as this story develops—this is just the beginning of a new phase for social media and its intricate relationship with crypto technology.
