A Major Altcoin is Hit Hard by an Official Announcement from X Developers: The Price Dropped Significantly, and They Made a New Move

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.

*This is not investment advice.