Crypto: Kaito Winds Down Crypto-backed ‘yaps’ As X Bans Payments For ‘ai Slop’

“We will no longer allow apps that reward users for posting on X (aka ‘infofi’),” X head of product Nikita Bier said on Thursday. “This has led to a tremendous amount of AI slop [and] reply spam on the platform.”

“We have revoked API access from these apps, so your X experience should start improving soon (once the bots realize they’re not getting paid anymore),” he added.

Within an hour of Bier’s post, Kaito said it would sunset its “Yaps” product that rewarded users for posting on X, triggering a major fall in its KAITO (KAITO) token.

Yaps and Snaps rewarded users with points, tokens and airdrops for posting and engaging with crypto content on X, often leading users to turn to AI to generate responses.

X said it would support affected apps seeking to migrate to other social networks.

Related: BitMine to invest $200M in YouTuber MrBeast’s Beast Industries

The broader InfoFi crypto market cap is now down 13% over the last 24 hours to $359.5 million.

X’s ban also sparked accusations that some KAITO stakers may have had advanced knowledge that it was coming before the company publicly announced it.

Over 1 million KAITO tokens are set to be unstaked on Friday, 20 to 30 times higher than usual. Since the unstaking period takes seven days, some crypto analysts suggested this could indicate that insiders received early information about the ban.

Magazine: 6 reasons Jack Dorsey is definitely Satoshi… and 5 reasons he’s not

Source: CoinTelegraph