Kaito token and NFT prices plunge as X blocks InfoFi apps to fight spam

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.

AITO, 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.

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.

Source: https://cryptobriefing.com/kaito-drops-x-blocks-infofi-apps-to-fight-spam/