KAITO token drops after X tightens API rules against infofi projects.

• X restricts API and affects infofi projects.
• Token KAITO reacts with a double-digit drop.
• Spam and AI errors motivate change.

The KAITO token experienced a sharp decline in value after X, the platform formerly known as Twitter, announced a review of its API policies for developers. The change prohibits applications that reward users for posts, a practice associated with projects classified as "infofi".

We are reviewing 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

The decision was announced by Nikita Bier, product lead for Xbox One X, who explained the expected impact of the measure on user experience.

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“We revoked API access for these apps, so your experience with X should start improving soon (once the bots realize they're no longer being paid).”

wrote the executive in a post made on Thursday.

Shortly after the announcement, the Kaito token, native to the infofi ecosystem, experienced a drop of over 10%, reflecting the market's sensitivity to these projects' dependence on integrations with the platform. At the time of the announcement, the asset was trading near US$0,59, accumulating a decline of approximately 14,5% on the day.

Kaito operates as a platform that aggregates posts from influential cryptocurrency accounts on X, organizing data to indicate which topics are gaining traction among market participants. This model, however, has come under scrutiny from the social media company.

According to Bier, the proliferation of infofi initiatives contributed to a "huge amount of AI errors and spam in responses" within the platform. The increase in this type of content reportedly pressured the X team to adopt a more restrictive stance regarding the use of the API by applications that encourage automated posting.

In a straightforward tone, the executive also advised affected developers to seek alternatives outside of X.

“If your developer account has been terminated, please contact us and we will assist in transitioning your company to Threads and Bluesky.”

stated.

Despite the recent drop, KAITO still maintains a market capitalization of around US$140 million, with a fully diluted valuation estimated at approximately US$586 million. Shortly after the initial airdrop in February 2025, the token's FDV (Net Value Added) approached US$2 billion, driven by interest in attention monetization models and social data.

This episode reinforces how operational adjustments in large social media platforms can have immediate effects on cryptocurrency projects that directly depend on these infrastructures to generate engagement, data, and economic value.