Kaito token and NFT prices fell when X blocked InfoFi apps to fight spam

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According to product head Nikita Bier, X has updated its developer API policies to block InfoFi apps from spamming. The change in policy triggered widespread losses in the InfoFi market, affecting aliases such as KAITO, COOKIE and LOUD.

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Kaito, the parent of the InfoFi protocol Kaito AI, announced today that it will block apps that reward X users for posting on the platform, down 20%.

Following the announcement of a policy change by CoinGecko, the token dropped from $0.7 to $0.56.

The sell-off extended to Yapybaras – Kaito Genesis NFT stock, which saw its floor price drop 50% to 0.21 ETH, OpenSea reported.

The attack was revealed by Xs In a statement shared on the forum, Head of Product Nikita Bier. It says the changes are to address the growing number of automated spam and AI-generated content linked to InfoFi apps.

X has cut off API access for affected apps and supports developers who want to migrate to other social networks.

We are revising our Developer API policies:

We no longer allow applications that reward users for posting on X (aka “infofi”). This has led to massive amounts of AI slop and spam responses on the forum.

We've removed API access from these apps, so your X experience…

— Nikita Bier (@nikitabier) January 15, 2026

After the policy update, other InfoFi tokens also dropped significantly. Cookie DAO cookie decreased by 15%, LOUD by 16% and ARBUS slide In Care Of 9% The data shows that the total market value of the sector has decreased by 11.5% in the previous day.