X moved to curb incentivized posting on Jan. 15, revoking developer API access for so-called InfoFi apps in a bid to clean up artificial intelligence (AI)-generated spam and reward-driven reply farming.
KAITO Price Drops Following X Ban on Reward-Based Posting Apps
Nikita Bier, head of product at X, announced the policy shift in a post that left little room for ambiguity: applications that reward users for posting content on the platform are no longer welcome. The decision takes aim at InfoFi, short for Information Finance, a model that ties financial incentives to engagement metrics.
Bier said the affected apps had fueled “a tremendous amount of AI slop and reply spam,” crowding timelines with low-effort posts optimized for rewards rather than conversation. API access for those platforms was revoked immediately, with the expectation that automated accounts would disengage once payouts dried up.
The announcement rippled quickly through crypto and Web3 circles, where InfoFi platforms have leaned heavily on X for visibility and data. One of the most visible casualties was Kaito, an AI-driven InfoFi project whose X-based “Kaito Yapper” community was swiftly banned following the change.
The Kaito Yapper group, which counted roughly 157,000 members, functioned as a posting hub where users earned rewards based on AI-scored engagement. Its removal was widely framed on crypto Twitter (CT) as a decisive strike against what critics viewed as industrial-scale content farming.
Market reaction was immediate. Kaito’s native token, KAITO, slid roughly 17% to 20% in the hours following the announcement, falling from about $0.70 to near $0.56. Floor prices for Kaito’s Yapybaras NFTs also dropped sharply, reflecting concerns about the project’s reliance on X integrations.
InfoFi itself emerged in 2025 as a way to tokenize attention, data and insights, blending artificial intelligence with blockchain-based incentives. Supporters argued it shifted value away from opaque social algorithms and toward users. Detractors countered that it rewarded volume over substance.
In practice, many InfoFi apps used X’s API to track posts and replies, then issued tokens or points based on engagement. The result, according to critics, was a flood of templated responses and keyword-stuffed commentary designed to game scoring systems.
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Reaction to the ban was split. Some users applauded X for taking a hard line against spam and restoring signal to timelines. Others accused the company of hypocrisy, pointing to its own ad revenue-sharing program that rewards creators based on engagement. Still, most were pleased that spammy AI slop posts would be vanquished, at least on X.
“Shame on all of the projects that ran AI slop campaigns via InfoFi platforms,” Onchain slueth ZachXBT wrote on X. “The inorganic activity / fake metrics was obvious if you have common sense and it made X borderline unusable for everyone else.”
Bier’s suggestion that affected developers consider platforms like Threads or Bluesky highlighted X’s stance: incentivized posting is no longer compatible with its ecosystem. For projects built around “post-to-earn” mechanics, the message was blunt.
The policy change leaves InfoFi developers facing a strategic reset and raises broader questions about how financial incentives can coexist with open social platforms. For now, X appears committed to drawing that line firmly.
FAQ ❓
- What did X change in its API policy?
X banned apps that reward users for posting content, cutting off API access immediately. - Why did X target InfoFi apps?
The company cited excessive AI-generated spam and low-quality reply farming. - Which projects were affected first?
Kaito’s Yapper community was banned, and its token and NFTs declined soon after. - Can InfoFi apps still operate elsewhere?
Yes, but they will need to migrate away from X or rethink how incentives work.