Key Takeaways
- X revised its developer API policies to block InfoFi apps as a measure against spam, according to Head of Product, Nikita Bier.
- The policy change has triggered broader losses across the InfoFi market, affecting tokens like KAITO, COOKIE, and LOUD.
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KAITO, the native token of the InfoFi protocol Kaito AI, fell 20% today after X announced it would block apps that reward users for posting on the platform.
The token dropped from $0.7 to $0.56 following the policy change announcement, per CoinGecko.
The sell-off extended to the Yapybaras – Kaito Genesis NFT collection, which saw its floor price collapse over 50% to 0.21 ETH, according to OpenSea.
The crackdown was revealed by X’s Head of Product Nikita Bier in a statement shared on the platform. He said 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…
— Nikita Bier (@nikitabier) January 15, 2026
Other InfoFi tokens also declined sharply after the policy update. Cookie DAO’s COOKIE fell 15%, while LOUD dropped 16% and ARBUS slid about 9%. Data showed the sector’s total market value fell 11.5% in the past day.
