X Developer API Policy Overhaul Triggers Major Selloff in KAITO Token

Source: CryptoNewsNet Original Title: A Major Altcoin is Hit Hard by an Official Announcement from X Developers: The Price Dropped Significantly, and They Made a New Move Original Link: Twitter (formerly X) has made a significant change to its developer API policies in an effort to reduce spam and low-quality engagement on the platform. Under the new policy, applications that reward users for sharing content have had their API access revoked.

X Product Leader Nikita Bier stated, “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 noted that the model known as “infofi” (information finance) led to “largely AI-driven low-quality content and response spam” on the platform.

Immediately following this announcement, KAITO, the native token of the infofi network Kaito, lost more than 10% of its value in the markets. Kaito is known as a platform that analyzes the posts of leading cryptocurrency accounts on X to show which topics are trending in the community.

The chart shows the decline in the price of KAITO.

Bier also stated that teams whose developer accounts were terminated could receive support during the transition to alternative platforms such as Threads and Bluesky.

Meanwhile, Kaito also announced a strategic transformation. The company announced the end of its reward-based ranking and “Yaps” program, ushering in the Kaito Studio era. In a statement, Kaito explained that open and permissionless reward models failed to address quality and spam issues due to algorithm changes and lowering industry thresholds. The new Kaito Studio will offer a more traditional and layered marketing model where brands work with content creators who meet specific criteria.

Kaito emphasized that this new structure aims for advanced analytics, multi-platform access (X, YouTube, TikTok, and others), and expansion into non-crypto verticals. The company stated that by 2026, it envisions moving away from a purely crypto-focused structure and embracing a broader content creator economy encompassing finance, artificial intelligence, and other sectors. The announcement also noted that the KAITO token will continue to play a role within Kaito Studio, but details will be shared later.