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Elon Musk’s X has stopped crypto tasks from paying customers to put up content material in change for tokens, as product chief Nikita Bier mentioned these reward apps have brought on an excessive amount of spam and low-quality AI posts.
X has now eliminated their API entry, which means bots and customers can not earn cash simply by posting. After the announcement, the KAITO token dropped about 15%, falling from round $0.70 to $0.57.
KaitoAI founder Yu Hu mentioned the corporate will shut down its “Yaps” rewards and leaderboard system. Kaito is now shifting to a brand new mannequin known as Kaito Studio, which can concentrate on higher-quality creators and higher model partnerships as an alternative of mass reward applications.
We’re revising our developer API insurance policies:
We are going to not enable apps that reward customers for posting on X (aka “infofi”). This has led to an amazing quantity of AI slop & reply spam on the platform.
We have now revoked API entry from these apps, so your X expertise ought to…
— Nikita Bier (@nikitabier) January 15, 2026
Hu defined that Yaps was meant to reward individuals pretty based mostly on their contributions. Over time, Kaito added stricter guidelines and filters to scale back spam. Nonetheless, spam nonetheless elevated on X as a result of different tasks had weaker guidelines, and X’s algorithm modifications allowed low-quality posts to unfold.
Kaito Shifts to Focused Creator Rewards
Many cryptocurrency tasks utilized Kaito to advertise their tokens and appeal to customers, notably in South Korea. Nonetheless, Hu mentioned the cryptocurrency business is evolving. As an alternative of massive airdrops and open reward methods, tasks now desire focused incentives that reward particular actions.
Kaito Studio will use a tier system the place manufacturers work with chosen creators based mostly on information and relevance. It can additionally broaden to different platforms like YouTube and TikTok, and later into non-crypto industries.
Hu confirmed that Kaito’s different merchandise, comparable to Kaito Professional, API, Launchpad, and Markets, won’t be affected. The KAITO token will nonetheless be used within the new system.
The transfer brought on combined reactions within the crypto group. Some consultants blamed AI spam campaigns for the issue, whereas others praised X for cleansing up pretend engagement and enhancing content material high quality.
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