Why is InfoFi no longer appealing?

Original author: Geek

Original compilation: Luffy, Foresight News

Reprint: Luke, Mars Finance

If we have迎来the end of the InfoFi era, or are gradually approaching this point, I would not be surprised.

Since the rise of InfoFi, many people have earned considerable profits from it, with some accumulating five-figure earnings and others even reaching six-figure profits. However, today, some signals deserve our high vigilance.

Threshold rule changes

Strictly speaking, I do not think that Kaito's upgrade this time is entirely a bad thing; it may effectively prevent a large number of accounts from using AI to generate low-quality content for "inflating numbers," while also improving content quality.

However, after the upgrade, not only small accounts were impacted, but many large accounts also could not escape. This led to a large number of users who relied on Kaito choosing to leave, as they had almost no chance to earn money through the platform after the upgrade.

In response, some project parties choose to eliminate thresholds to attract small accounts to join. This precisely illustrates that, in most cases, the small account group is crucial.

My view is that Kaito seems confused about the direction of this upgrade, and many project teams clearly do not like this "threshold restriction." However, it is undeniable that Kaito's performance has been quite outstanding over the past few months.

Token distribution plan is disappointing.

For content creators (yappers), the conventional token allocation ratio of 0.5%-1% is no longer sufficient, as the valuation of these tokens at launch is often very low.

In the early days, some accounts could earn a 4-5 digit profit through 1-2 months of promotional activities; however, now, even participating in activities for 3-6 months can only yield a 3-4 digit profit, which has left many feeling disheartened.

Even top accounts, even if they produce high-quality content, find it difficult to earn a substantial four-digit income.

Why is this bad news for creators who rely on InfoFi? Before the rise of InfoFi, many creators earned good income by promoting content as brand ambassadors or KOLs. Now, the compensation offered by projects on Kaito is simply not comparable to external collaborations. Given this fact, it is not surprising that more and more creators are choosing to leave the InfoFi platform.

The dominant position of "Capital Launchpad" is highlighted.

On July 22, Kaito's "Capital Launchpad" officially launched, with its first project being Espresso, and more projects will follow.

For Kaito, this is undoubtedly a good product, but I also have a few concerns:

So far, none of the projects through Kaito's initial token offering have been launched on the public market.

These projects have not announced a launch date;

Most projects are overvalued, and the token unlocking schemes are unfriendly to investors.

My additional point of view: Kaito was initially built specifically for InfoFi, and later decided to add extra platform features (such as Launchpad), which is a great attempt in itself. However, recently, more and more projects are choosing to settle on "Capital Launchpad" rather than participate in the "Creator Rankings." This trend is clearly not very optimistic for an InfoFi platform.

However, this is just an obvious phenomenon I have observed, and it seems that not many people question it.

The project party prefers to cooperate directly with KOLs rather than through the Kaito platform.

It is obvious that the project party is no longer so enthusiastic about participating in InfoFi cooperation.

Recently, Zachxbt released a Google Sheet listing a batch of accounts that received compensation from a certain project party. I mention this not out of surprise, but because the amounts of these compensations are quite substantial, especially when compared to the projects on Kaito's "Creator Leaderboard."

I believe this has made many people realize that besides InfoFi, there are many ways to make money. The reality of human nature is "to find ways to earn more money," so I think this poses direct competition to Kaito.