X has recently taken strong action against InfoFi-type applications.

X product lead Nikita Bier directly stated on Thursday that the platform will no longer allow applications that incentivize users to post through reward mechanisms. The reason is simple—these products generate too much AI spam content and bot spam. X has revoked the API permissions for these applications, and user experience improvements are just around the corner (especially when those bots realize there’s no reward to be gained).

The fastest to react was the Kaito project. In less than an hour, Kaito announced the closure of the Yaps product—the tool that rewarded users with points, tokens, and airdrops for posting crypto content and interacting on X. The result was quite painful: the KAITO token plummeted over 20% within 24 hours, dropping sharply.

At the same time, Cookie DAO also followed suit and shut down the Snaps product, and the COOKIE token price also declined accordingly. These two projects essentially did the same thing—using tokens to incentivize users to post and discuss crypto topics on X, which instead led to a bunch of AI-generated spam replies.

In plain terms, this wave of events highlights a real issue: over-incentivization mechanisms often end up being the death of content quality. When making money becomes the primary goal, content itself turns into a tool.