InfoFi Narrative Collapses, Kaito, Cookie, and Others Shut Down Related Products
The InfoFi narrative, which gained significant traction in the crypto industry, experienced a sudden collapse following an announcement by X's product lead, Nikita Bier, regarding changes to the platform’s API policy. The new policy prohibits applications that reward users for posting on X, citing concerns over AI-generated spam and low-quality replies. This decision effectively undermines the core functionality of many InfoFi projects that rely on X’s API to access user data and distribute tokenized rewards.
Key projects, Kaito and Cookie, quickly responded to the policy shift. Kaito announced it would pivot toward Kaito Studio, a more selective, brand-driven platform that moves beyond the crypto space. Its founder, Yu Hu, emphasized a broader focus beyond cryptocurrency. Similarly, Cookie decided to shut down its Snaps platform but is developing Cookie Pro, a real-time crypto market intelligence tool, while exploring potential future adaptations in line with X’s guidelines.
The abrupt policy change highlights the vulnerability of InfoFi models that depend heavily on-platform engagement metrics. While some projects, such as those focused on monetizing narratives rather than direct posting rewards, may remain unaffected, the incident marks a significant shift for the attention economy within crypto. The evolution of InfoFi may continue in new forms, but its current iteration has been severely disrupted.
marsbit01/15 17:56
