X Takes Action Against Paid Engagement Apps: AI-Generated Content and Reply Spam Target Crypto Tokens

The social media platform X has revoked API access for applications that reward user posts, leading to significant sell-offs in the cryptocurrency sector. Head of Product, Nikita Bier, targeted InfoFi applications, which provide financial incentives for engagement, citing concerns over spam and AI-generated content. The market reacted immediately, with prominent InfoFi token Kaito plummeting 20%, while others like Cookie DAO fell by up to 15%. The overall InfoFi market, worth £290 million, dropped over 10%. In response, Kaito founder Yu Hu announced a shift to Kaito Studio, a tier-based marketing platform. Affected developers were encouraged to explore alternatives like Meta’s Threads. However, Bier clarified that InfoFi programs couldn’t pay for API access due to existing high costs, highlighting vulnerabilities in reward-based crypto models. The ban also underscores ongoing tensions between X and the crypto community over content distribution and engagement metrics. Blockchain investigator ZachXBT praised the move, aiming to reduce fake activity on the platform.

Source link