X (formerly Twitter) has revised its developer API policies, banning applications that reward users for posting or engagement — commonly known as InfoFi apps. According to X product lead Nikita Bier, these apps were creating massive amounts of AI-generated and reply spam, hurting platform quality. As a result, API access for such applications has already been revoked.
Following this announcement, $KAITO , an InfoFi-related token, saw a short-term drop of over 15%, as market sentiment turned negative. This move signals stricter control by X on monetized engagement models and could force InfoFi projects to rethink their platforms. Developers affected by this change may transition to alternatives like Threads or Bluesky.
This update highlights how platform policy changes can directly impact crypto projects and token prices. 📉👀
