Kaito Token and NFT Prices Plunge as X Blocks InfoFi Apps to Fight Spam

PermabullPete · 2026-01-15T18:20:51+00:00

The Kaito token dropped 20% after X blocked apps rewarding user posts to combat spam, impacting the overall InfoFi market, which saw declines in multiple tokens and a total market value decrease of 11.5%.

PermabullPete

2026-01-15 18:20:51

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Source: CryptoBriefing Original Title: Kaito token and NFT prices plunge as X blocks InfoFi apps to fight spam Original Link:

Overview

KAITO, the native token of the InfoFi protocol Kaito AI, fell 20% following X’s announcement to block apps that reward users for posting on the platform.

The token dropped from $0.7 to $0.56 following the policy change announcement. The sell-off extended to the Yapybaras – Kaito Genesis NFT collection, which saw its floor price collapse over 50% to 0.21 ETH.

Policy Change Details

The crackdown was revealed by X’s Head of Product Nikita Bier in a statement shared on the platform. He stated the changes are meant to address growing automated spam and AI-generated content linked to InfoFi apps.

X has already cut off API access for the affected apps and will support developers seeking to migrate to other social networks.

We are revising our developer API policies:

We will no longer allow apps that reward users for posting on X (aka “infofi”). This has led to a tremendous amount of AI slop & reply spam on the platform.

We have revoked API access from these apps, so your X experience should…

Broader Market Impact

Other InfoFi tokens also declined sharply after the policy update:

COOKIE fell 15%
LOUD dropped 16%
ARBUS slid about 9%

The sector’s total market value fell 11.5% in the past day, reflecting the significant impact of X’s policy decision on the entire InfoFi ecosystem.

KAITO-18,25%

ETH-0,27%

COOKIE-14,86%

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MechanicalMartel

· 5h ago

Haha, another round of rug pulls—are we protecting against spam or withdrawals?

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IntrovertMetaverse

· 5h ago

Another project has failed, this time Kaito, starting with a 20% drop. Spam emails can cause a collapse? X Blocks really has a trick up their sleeve. Is InfoFi this fragile? The entire market is following suit, I'll just watch. Relying on rewards to attract users, but it backfired and became a knife, how ironic. Now it's all blamed on the entire sector, retail investors are the ones suffering the biggest losses.

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TokenomicsDetective

· 6h ago

Oh my, here we go again, cutting leeks. Fighting spam is just an excuse, isn't it?

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DegenWhisperer

· 6h ago

Damn, it's the anti-spam team causing trouble again. Now the whole market is going down with it...

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RugResistant

· 6h ago

Ah... another reason to criticize garbage, but ends up shooting oneself in the foot? Truly speechless.

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governance_ghost

· 6h ago

Damn, one anti-spam measure directly cut 20%... How serious is that? That's why I say InfoFi is a bit fragile; one policy can cause a crash. Wait, is X Blocks this time really smart or overreacting? Spam emails are really annoying, but is this using a sledgehammer to crack a nut? Hmm, it seems I need to re-evaluate the fundamentals of this track.

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