🔥 X Changes the Rules — the Market Pays the Price
Reward without control is spam.
Control without rewards is a dead ecosystem.
And the market ignored this conflict for far too long.
📉 KAITO token dropped nearly 20% after X abruptly changed its API policy.
No warning. No transition. Just — off.
🧠 What really happened?
X cut API access for apps that rewarded users for posts and engagement.
The reason: spam, farming, and AI-generated noise flooding the feed.
⚠️ But for KAITO, this wasn’t a “minor issue.”
It was the core of the entire model.
💥 Why did the market react instantly?
• Engagement rewards → disabled
• Points & incentives → wiped out
• User growth → in question
When utility disappears, price doesn’t wait for explanations.
📊 The key lesson for investors
InfoFi projects tied to Web2 platforms don’t control their foundation.
One API update — and a token turns into an idea without economics.
🧩 Final takeaway
This isn’t just a KAITO crash.
It’s a market signal: “Earn for engagement” models without sovereign infrastructure are temporary.
Are you holding tokens like this — or already out? 👀
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