What Caused the Decline in KAITO Token Value?
The value of the KAITO token saw a significant decline of 20% after X updated its policy regarding applications that reward users for posting. This change specifically targets 'InfoFi' apps, which have permitted users to earn tokens for their contributions on the platform. Following this announcement, the KAITO token dropped from $0.7 to $0.56, as reported by CoinGecko.
What Does X’s Policy Update Mean for InfoFi Apps?
X's decision, communicated by its Head of Product, indicates a firm stance against what they term "AI slop and reply spam" generated by these applications. The updated developer API policies now restrict such applications' operational capabilities on X. As a result, the immediate expectation is a notable improvement in user experience, attributed to decreased bot activity fueled by these rewards.
Developers affected by this policy change have been encouraged to transition their projects to alternative platforms such as Threads and Bluesky. The shift aims to recalibrate the ecosystem and possibly re-establish a more favorable operational environment for developers void of spam and unwanted AI-generated content.