The social media platform X has updated its developer API policies to prohibit applications that financially incentivize users to post, specifically targeting the criticized “InfoFi” sector known for spammy automated replies and low-quality AI content. The decision led to immediate API access revocations for several projects like Kaito, which announced the removal of reward features. Nikita Bier, X’s head of product, indicated that this ban aims to reduce AI-generated content, enhancing user experience by removing financial incentives. The policy change has caused a swift decline in related cryptocurrencies, with Kaito’s KAITO token dropping nearly 20% post-announcement. Other projects, like Cookie DAO, have similarly faced losses. X is now focusing on tightening engagement data controls, suggesting a possible shift of affected developers to alternative platforms such as Threads or Bluesky. This strategy marks a significant pivot away from prioritizing revenue from high-volume API users toward improving platform quality.
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