😱😨😨 Why the KAITO Token is Dumping: A Perfect Storm of Fear and Supply
The KAITO token is currently experiencing a "hard dump," with its price plummeting nearly 80% from its peak. This crash isn't just a market dip; it is a synchronized collapse driven by technical platform threats, massive looming supply, and a breakdown in community trust.
1. The "X" API Policy Crisis
The most immediate catalyst is a major policy shift from X. Kaito’s core product an AI search engine for "Information Finance" relies almost entirely on real time data from crypto Twitter. New restrictions on API access for "Infofi" projects have sparked fears that Kaito’s primary engine could be throttled or shut down, rendering the platform’s utility obsolete overnight.
2. The January 20th Supply Shock
Market participants are currently "front running" a significant token unlock scheduled for January 20, 2026. With 8.35 million tokens (roughly 3.5% of the circulating supply) about to hit the market, investors are selling now to avoid being the "exit liquidity" for early backers. This pre-unlock panic is being exacerbated by the fact that a large portion of the total supply remains in the hands of the Foundation and insiders.
3. Institutional Sell Pressure
On chain alerts have triggered "whale warnings" across the community. Large transfers including a notable $13 million move from private multisig wallets to major exchanges suggest that early investors and market makers are de risking. When market makers like Wintermute shift large volumes to exchange hot wallets, retail traders view it as an imminent sell signal, leading to a cascade of liquidations.
4. Lingering Airdrop Resentment
The dump is also a byproduct of a fragile community. Kaito’s launch was marred by accusations that the airdrop was skewed toward "KOLs" (Key Opinion Leaders) and influencers, leaving smaller contributors feeling exploited. Without a loyal "diamond-hand" base to defend the price, the token has little support during periods of high volatility.
