X’s API Ban Sparks Major Changes in InfoFi Crypto Scene
The recent announcement by X (formerly Twitter) to revoke API access for apps that incentivize user engagement has led to a seismic shift in the cryptocurrency space. Projects like Kaito and InfoFi, which were heavily reliant on these APIs, have been hit hard, with their tokens experiencing severe sell-offs. While this decision addresses widespread issues such as AI-generated content overload and spam, it has left the future of InfoFi platforms in question.
Cracking Down on AI Spam and Bot Activity
X’s product lead, Nikita Bier, explained that the ban targets “AI slop”—volumes of low-quality, bot-generated content incentivized by reward systems. By removing API access, X aims to improve content quality and create a more authentic user experience. This policy change brought about immediate consequences for platforms like Kaito and Cookie DAO, which relied on token-based incentives to drive engagement.
Kaito and Cookie DAO Pivot Amid Turbulence
Unsurprisingly, the ban has forced these projects to adapt swiftly. Kaito founder Yu Hu announced the phasing out of their Yaps incentivized leaderboards, with a strategic pivot toward a new product called Kaito Studio. Meanwhile, Cookie DAO confirmed the cessation of its Snaps creator campaign system to comply with the new API restrictions. The company plans to continue some operations through enterprise-level API partnerships.
This overhaul marks a pivotal moment for platforms that built business models on tokenizing attention. Critics had already raised concerns about the sustainability of these models, citing issues like insider-heavy tokenomics and a glut of bot-driven engagement. For instance, Kaito’s KAITO token launch in 2025 sparked backlash due to perceived unfair token distribution and fast sell-offs that eroded trust.
What Does This Mean for the InfoFi Sector?
Many see X’s crackdown as the beginning of a larger shift in the attention economy. The focus is moving away from tokenized incentives toward curated, platform-compliant partnerships. While this may limit opportunities for reward-based engagement, it opens doors for more organic connections and high-quality content within the crypto community.
How This Change Benefits the Crypto Landscape
Although the transition looks painful for InfoFi platforms, cleaner timelines on X stand to benefit traders, creators, and developers alike. By reducing spam and fostering transparency, these changes promise to restore crypto-related discussions to their original value—driven by genuine research, real users, and impactful insights.
For individuals looking to reduce spam and improve focus while navigating these changes, tools like the Noisli app, a productivity and focus-boosting ambient sound platform, may become essential for staying tuned into relevant crypto trends.
Final Thoughts
X’s decision to ban reward-driven InfoFi apps sends a clear signal that quality matters over quantity. As the crypto industry evolves with stricter APIs and platform policies, the emerging strategies will undoubtedly reshape both InfoFi platforms and their audiences. The days of unfettered bot-driven engagement may be over, but this marks the beginning of a new era for the crypto community to thrive in a more authentic and meaningful way.
