KAITO prices crashed below the 9-month low, following the announcement to shut down its yield-aggregated promotion (YAP) products on X. KAITO made this decision to discontinue its YAP products after Twitter (X) banned the reward-based posting model, as there was a significant amount of AI-generated content being incentivized.
AI-powered InfoFi network, KAITO announced that it would shut down the Yap product and incentivized leaderboards shortly after Twitter updated its developer API policy. KAITO’s Yap products, which incentivize the user for posting on X, were replaced by a more streamlined product, ‘KAITO studio,’ a creator marketing platform focused on selective brands after X updated its policies. At the time of the announcement, KAITO’s Yap products had a community of more than 157,000 members.
The Head of Product at X, Nikita Bier, said, “We will no longer allow apps that reward users for posting on X (aka “infofi”). This has led to a tremendous amount of AI slop & reply spam on the platform.”
InfoFi was supposed to connect on-chain reality with what people are talking about, not pay people to talk nonstop. Kaito’s Yaps turned “attention” into a points game, so projects could look hot on X even when there weren’t real users. When posting is rewarded, the timeline stops reflecting belief and starts reflecting farming. Cutting that off is good for the ecosystem because it forces the signal to come back from real usage, not manufactured hype.
Lavneet Bansal
KAITO crashes below 9-month low
As X took the necessary steps to clean the feed of its user, and KAITO agreed to comply with the changes, token holders took a hit, as the prices crashed. The token crashed hard below a key support level at $0.62, a 9-month low.
The token has been crashing inside the falling wedge since June, making lower lows and lower highs. Once KAITO broke out from the wedge, it started a new uptrend. However, the token crashed below the newly established uptrend after the platform took the necessary steps to align with the latest policies on X.
