Kaito Analytics Platform halts Yaps amid X's review of InfoFi app, token drops 17%

Analytical research on the Web3 ecosystem reveals how social media platform policy changes have a direct impact on projects within the emerging industry. Kaito, a leading crypto data analytics platform, has announced the discontinuation of their Yaps product in line with X’s decision to ban applications that provide financial incentives to users for posting activities on the platform.

New Wave of Platform Oversight: The Reasons Behind X’s Policy

X’s product head, Nikita Bier, explained that this policy change is a response to the increasing volume of AI-generated content on the platform. In an official announcement, Bier stated that programmatic access has been revoked from affected applications, encouraging developers to consider migrating to alternative platforms like Threads and Bluesky.

AI-based spam issues have become a primary focus of industry analytics research, given the exponential increase in automated content volume that degrades the quality of social media discussions. This trend has prompted X to adopt a stricter stance against third-party applications facilitating such practices.

Changing InfoFi Model: From Unauthorized Incentives to a Measured Approach

Yaps is a flagship product of Kaito that allows users to earn rewards by creating content about specific projects or brands—a mechanism categorized broadly under InfoFi (Information Finance). This model successfully attracted hundreds of thousands of users, especially in Korea, but at the same time triggered a significant increase in marketing-oriented, less organic content.

Yu Hu, founder of Kaito, admits that the decision to cease Yaps came after in-depth discussions with X. He stated that the fully permissionless distribution model driven by incentives is “no longer viable” in the context of current platform policy constraints. The Kaito Yapper community, which has around 157,000 members on X, has been blocked following the implementation of these policy changes.

Analytical research on the InfoFi phenomenon shows that incentive-based models, while creating large engagement ecosystems, are vulnerable to abuse and low-quality content generation. These findings align with X’s decision to restrict such models.

Transition Strategy: Kaito Studio as an Alternative Solution

Kaito is not merely discontinuing Yaps; the platform announced the launch of “Kaito Studio,” a more structured creator marketing solution based on traditional tiers. Kaito Studio is designed to focus on selective brand-creator partnerships, with in-depth analytics services and cross-platform distribution—including YouTube, TikTok, and other platforms outside of X.

This strategic transition reflects a shift from an open and permissive reward model toward a more controlled, partnership-driven approach. Kaito ensures that this change will not affect other product lines such as Kaito Pro, API, and Launchpad.

The $KAITO token continues to play a functional role in the new Kaito Studio model, although the specific mechanisms are still under announcement. This demonstrates Kaito’s commitment to maintaining its token ecosystem amid product transformation.

Market Impact and Industry Implications

Following the announcement, the $KAITO token experienced a decline of approximately 17% in the immediate period after the news spread, according to data collected by blockchain investigator ZachXBT. Recent data shows the $KAITO price at $0.36 with a 24-hour movement of -2.76%.

This token value decrease reflects market reactions to the uncertainty surrounding the shift in revenue models that previously underpinned engagement on the platform. However, the Kaito Studio roadmap update opens new opportunities within the growing creator economy segment.

From an industry analytics research perspective, this event marks a critical moment in the evolution of the InfoFi sector. Platforms that previously relied on open-incentive models must adapt to an increasingly regulated ecosystem. Kaito’s decision reflects a pragmatic approach to survival and scaling in a constantly changing landscape.

Long-term perspectives suggest that the creator economy model will continue to evolve, but with a more sustainable and platform policy-compliant framework. Kaito Studio positions the company to capitalize on this trend while avoiding regulatory friction impacting the industry.