Twitter, now operating as X, has enacted a significant policy change to its developer API, specifically targeting applications that reward users for sharing content. The move is aimed at reducing spam and low-quality engagement on the social media platform. X Product Leader Nikita Bier confirmed the action, stating, "We removed API access for these applications. Your X experience will start to improve shortly after the bots realize they are no longer receiving payments."
Bier directly criticized the "infofi" (information finance) model, which he said resulted in "largely AI-driven low-quality content and response spam." This policy shift had an immediate and severe impact on the cryptocurrency project Kaito, a platform that analyzes posts from leading crypto accounts on X to identify trending community topics.
The native token of the Kaito network, KAITO, plummeted by more than 10% in the markets following the announcement. In response to the loss of its core data source, Kaito has initiated a major strategic transformation. The company announced the end of its reward-based ranking and "Yaps" program, marking a shift to what it calls the "Kaito Studio" era.
Kaito explained that open, permissionless reward models failed to address quality and spam issues, especially in light of algorithm changes and lowering industry standards. The new Kaito Studio will adopt a more traditional, layered marketing model where brands collaborate with pre-vetted content creators. The platform plans to expand its focus to include advanced analytics, multi-platform access (X, YouTube, TikTok), and expansion into non-crypto verticals like finance and artificial intelligence.
By 2026, Kaito envisions moving away from a purely crypto-centric structure to embrace a broader content creator economy. The company noted that the KAITO token will continue to have a role within Kaito Studio, though specific details will be shared at a later date. Bier added that teams affected by the API termination could receive support transitioning to alternative platforms such as Threads and Bluesky.
