X's API Policy Change Crashes KAITO Token

The social media platform X has announced a significant change to its API policies, affecting third-party applications that incentivize users to post content. Nikita Bier, the head of product at X, stated that this move aims to combat the increasing amount of spam and low-quality content generated by such applications, often classified under the term "InfoFi" in the cryptocurrency sector.

We are revising our developer API policies: We will no longer allow apps that reward users for posting on X. This change should enhance your experience on the platform.

— Nikita Bier (@nikitabier) January 15, 2026

As a result of the policy change, many applications, including those associated with the Kaito platform, lost their API access. Following this announcement, the value of Kaito’s native token, KAITO, dropped nearly 20%, falling from $0.70 to $0.55.

Kaito had previously enabled users to exchange points earned (Yaps) for KAITO tokens through posting activities related to cryptocurrencies on X. With the API access revoked, this feature has been rendered obsolete.

In response to the policy shift, Kaito’s founder, Yu Hu, revealed plans to discontinue the Yaps program and related functionalities, while introducing a new initiative called Kaito Studio, aimed at marketing.

A Kaito representative noted that discussions with X indicated that a fully decentralized content distribution approach is impractical for maintaining quality on the platform.

This policy change comes on the heels of Bier's earlier announcement about the introduction of "smart tickers" for crypto and stock prices on X, marking a continued evolution of the platform's features.