Kaito.ai and Cookie DAO tokens plunged after X announced it would bar apps that pay users to post on the platform on Thursday, aiming to reduce automated content. Nikita Bier stated that the move targets “AI slop” and reply spam, and that API access had been revoked (“We will no longer allow apps that reward users for posting on X (aka ‘infofi’),” “This has led to a tremendous amount of AI slop [and] reply spam on the platform.”).
Kaito.ai said it would retire its Yaps reward product, and Cookie DAO said it would wind down Snaps, both actions announced on their X accounts. The Yaps update was posted, and the Snaps notice was shared by the project.
Market trackers showed sharp token moves after the ban. KAITO dropped roughly 17.7% to about $0.57, while COOKIE fell roughly 15.5% to about $0.038.
The broader InfoFi market cap slid about 13% to near $359.5 million, a decline also highlighted when CoinGecko posted the figures.
Observers noted unusual on-chain activity for KAITO, with over one million tokens due to unstake on Friday, far above normal levels, a spike that some raised concerns about insider knowledge (Ed. note: the unstaking window lasts seven days). The surge was reported on X.
