Crypto analytics platform Kaito has announced the shutdown of its Yaps product and associated incentive-based leaderboards, marking a strategic pivot after social media platform X introduced a new policy banning applications that financially reward users for posting content. Following the announcement, KAITO token fell approximately 17%, reflecting market concerns over the platform’s distribution model.
The decision comes shortly after Nikita Bier, Product Lead at X, confirmed that the company had updated its policies to prohibit apps that incentivize posting behavior. The move was aimed at curbing the surge of AI-generated spam and low-quality engagement, which had increasingly flooded the platform. According to Bier, API access has been revoked for violating applications, and affected developers may consider migrating to alternative platforms such as Threads or Bluesky.
Immediate Impact on the Kaito Ecosystem
The impact of the policy change was swift. Blockchain investigator ZachXBT reported that the Kaito Yapper community on X, which had grown to around 157,000 members, was locked shortly after the new rules took effect. This highlighted how deeply Yaps had been integrated into X’s ecosystem for user acquisition and engagement.
Yaps was designed to reward users for posting about brands or crypto projects, a model that successfully attracted hundreds of thousands of participants. However, it also contributed to a wave of AI-generated content, particularly among high-follower accounts in regions such as South Korea. The product belonged to the emerging InfoFi (Information Finance) category, where users are compensated for creating and sharing insights, narratives, or opinions.
Strategic Shift Toward Creator-Led Marketing
Kaito founder Yu Hu stated that the decision followed discussions with X and acknowledged that permissionless distribution models reliant on direct financial incentives are no longer viable under current social media constraints.
As a replacement, Kaito plans to launch “Kaito Studio”, a more traditional, tiered creator marketing platform. The new model will focus on curated brand–creator partnerships, data-driven campaign analytics, and multi-platform distribution beyond X, including YouTube and TikTok. This approach aims to reduce reliance on a single social network while aligning with platform compliance requirements.
Kaito emphasized that the transition will not impact its other core products, including Kaito Pro, APIs, Launchpad, or its upcoming Markets product. The $KAITO token is expected to remain a component of the new Studio model, with further details to be disclosed at a later stage.
A Broader Signal for InfoFi Models
The shutdown of Yaps underscores a broader challenge facing incentive-driven content models across social platforms. As major networks tighten policies around monetized engagement, crypto-native distribution strategies may be forced to evolve toward more selective, compliant, and relationship-based frameworks.
Disclaimer:
This article is for informational purposes only and reflects a personal blog-style analysis. It does not constitute investment advice or a recommendation to buy or sell any asset. Readers should conduct their own research and take full responsibility for their decisions.
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