The recent API restrictions from X have sent shockwaves through the infofi sector, particularly impacting projects like $KAITO and $COOKIE. Here's what went down: X is cracking down on applications that compensate users for posting content, which directly undermines the business model these tokens were designed around.

This policy shift represents a significant headwind for information-trading platforms built on incentivized posting mechanisms. When the underlying infrastructure—social proof and engagement rewards—gets disrupted, projects relying heavily on that model face real pressure.

For $KAITO and $COOKIE holders, the implications are considerable. These weren't just community tokens; they were integral to an entire ecosystem where user participation generated tangible value. With X tightening the screws on paid engagement, the value proposition shifts dramatically.

What's interesting is how quickly market dynamics can flip when platform policies change. This incident highlights a broader vulnerability in infofi—over-reliance on third-party platforms that can alter their terms without warning. It's a wake-up call for the sector: true sustainability requires independence from centralized policy decisions.