Haciyev Reşit 
The X platform announced that it will no longer allow InfoFi applications that reward users for posting content. This decision led to the revocation of API access for InfoFi projects, triggering sudden price movements across the sector. Leading tokens such as KAITO and COOKIE declined in value following the announcement, while short-term volatility increased in the market. This move is seen as part of X’s broader strategy to reduce spam and AI-generated content while improving overall user experience.
X Bans InfoFi Applications
X product manager Nikita Bier made key statements while announcing the change in the platform’s InfoFi policies. Bier stated:
“We will no longer allow applications that reward users for posting on X, emphasizing that these apps had created serious issues on the platform.”
According to Bier, such applications led to widespread AI-driven spam and the production of low-quality content. This negatively affected user experience and undermined the platform’s credibility. As a result, API access for these projects was revoked, aiming to provide users with a safer, cleaner, and more organized experience on X. Bier also noted that this step is critical for the platform’s long-term sustainability and for encouraging high-quality content creation.
Sharp Declines in KAITO, COOKIE, and Other Tokens
Following the policy change, InfoFi-related projects experienced rapid losses:
- KAITO fell by 20% to $0.56
- COOKIE declined by 15%
- LOUD dropped 16%, while ARBUS fell 9%
The total market capitalization of the sector also decreased by 11.5%, highlighting increased short-term volatility across InfoFi tokens. Selling pressure was also observed in the Kaito Genesis NFT collection. According to OpenSea data, the floor price dropped by over 50% to 0.21 ETH, showing that X’s policy shift had a significant impact on both the token and NFT markets.
API Policy and Long-Term Implications
X’s updated API policies aim to reduce spam content on the platform and improve user experience. Within this framework, reward-based mechanisms used by InfoFi projects were halted, and API access for these projects was revoked. Developers, however, will receive support if they choose to migrate their applications to alternative platforms.
While these changes led to sharp short-term declines in InfoFi tokens such as KAITO, COOKIE, and LOUD, the move is viewed as a strategic step to strengthen platform security and improve content quality in the long run. Investors and market participants are closely monitoring this development, as it may reshape sector dynamics and promote higher-quality content creation across social platforms.
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