Kaito Akhiri Yaps: InfoFi Strategy Changes After X Tightens Regulations

Crypto analytics platform Kaito has decided to end its Yaps product, marking a significant turning point in the InfoFi ecosystem after X (formerly Twitter) implemented stricter policies on paid applications. This strategic move reflects a major shift in how the decentralized information industry operates.

Wave of Restrictions: X Closes Access for Paid Applications

Nikita Bier, head of X product, announced that the platform no longer allows applications to compensate users for their posting activities. This decision stems from concerns over increasing spam generated by artificial intelligence and repetitive content that degrades the quality of discussions on the platform.

These restrictions include the removal of programmatic access for affected developers. X suggests creators whose contracts have been terminated consider migrating to alternative platforms like Threads (by Meta) and Bluesky, which offer a more open ecosystem for incentive-based models.

Market Impact: KAITO Token Drops 17% After Announcement

The policy change announcement directly impacted the value of the digital asset Kaito. According to blockchain investigator ZachXBT, the KAITO token experienced a decline of about 17% following the news. Currently, KAITO is trading at $0.37 with a 24-hour decrease of 3.86%, indicating ongoing volatility in the market.

The Kaito Yapper community on X, which previously had around 157,000 active members, was also blocked as a direct consequence of the platform’s policy changes. This indicates a serious impact on the user base built by Kaito through its incentive programs.

InfoFi and Incentive Models: An Uncertain Future

Yaps is essentially a product within the InfoFi (Information Finance) ecosystem where users can earn rewards by sharing insights and content about specific projects. The InfoFi model attracts hundreds of thousands of participants, especially from Korea, leveraging their large followings to generate income from content creation.

However, rapid growth also brings challenges. The surge of AI-generated content, while attracting significant user volume, creates content quality issues that are difficult for platforms to address. In this context, fully decentralized, incentive-based InfoFi models are beginning to lose regulatory appeal.

Kaito founder Yu Hu admits that the “permissionless” approach driven by financial incentives is “no longer viable” under the current X platform policy restrictions. This acknowledgment reflects a deep awareness of the evolving ecosystem dynamics.

Kaito Studio: A More Conservative Marketing Strategy

To adapt to this new environment, Kaito has launched Kaito Studio as a replacement for Yaps. This platform aims for a more traditional and structured marketing approach, focusing on selective partnerships between brands and quality creators.

Kaito Studio will provide analytics tools and cross-platform content distribution systems, extending beyond X to include YouTube and TikTok. This approach allows Kaito to remain relevant in the digital marketing space while avoiding direct confrontation with increasingly strict platform policies.

The KAITO token will continue to play a role in the Studio’s economy, although detailed mechanisms have not yet been fully disclosed. This transition is expected to balance user incentives with platform quality standards.

Kaito Ecosystem Continues Operations with Other Products

Kaito emphasizes that these strategic changes are limited to Yaps and the incentive leaderboard. Other products such as Kaito Pro, API, Launchpad, and upcoming Markets will continue to operate normally without disruption.

This decision reflects a diversification strategy to reduce dependence on a single point of failure, especially given the ongoing regulatory risks in the InfoFi industry. By maintaining a diverse product portfolio, Kaito aims to ensure long-term ecosystem stability.

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