Kaito, a notable player in the crypto analytics sector, has announced the termination of its Yaps service in light of recent regulatory changes implemented by X. The social media platform has banned applications that financially incentivize user posts, leading to immediate enforcement actions and bans.
The Yaps model, which encouraged user engagement through token rewards, has faced scrutiny due to its contribution to spam and low-quality content, often generated by automated systems. Following the announcement from X, which detailed the updated API policies aimed at reducing automated replies and enhancing content quality, Kaito”s $KAITO token experienced a significant decline of over 14%.
In a statement, Nikita Bier, head of product at X, emphasized that the revisions were necessary to combat the rising tide of AI-generated spam content on the platform. Developers are now encouraged to explore alternatives such as Threads and Bluesky for their projects.
The decision to shut down Yaps has raised concerns about the sustainability of InfoFi projects that rely on social media interactions. The Kaito Yapper community, which boasted approximately 157,000 members, was also impacted by the ban shortly after X“s policy update. This community played a crucial role in promoting content associated with Yaps.
In response to these developments, Kaito plans to introduce the “Kaito Studio,” a new initiative focused on fostering curated partnerships between creators and brands. This pivot indicates a strategic shift away from reward-driven posting models, aligning with X“s new regulations.
The upcoming Kaito Studio will prioritize analytics and cross-platform campaigns, extending beyond X to platforms such as YouTube and TikTok. Despite the overhaul, Kaito assures that other services like Kaito Pro and the Launchpad will remain unchanged, with the $KAITO token still integrated into the new framework, although further details are yet to be disclosed.
As a result of the Yaps shutdown and the uncertainty surrounding the new direction, the $KAITO token saw its price drop to around $0.59, with a market capitalization nearing $140 million. This valuation marks a stark decrease from a previous high of nearly $2 billion following the February 2025 airdrop.
