Kaito Nag-Pivot from Yaps: How Products Adapt to the New X Policy

Kaito, a well-known crypto analytics and rewards platform, is undertaking a major strategic realignment of its products following X (formerly Twitter) tightening policies against applications offering financial incentives for user engagement. The decision reflects the broader industry facing regulatory pressures and the need for more sustainable business models within the social media ecosystem.

From a promising start, Kaito’s Yaps platform gained popularity due to its innovative approach to user rewards. The model is straightforward: users earn incentives by sharing insights and content about crypto projects. For content creators worldwide, especially in Korea where the platform has a large following, this presented an attractive opportunity. However, the rise of AI-generated spam and low-quality posts has become an unavoidable problem.

X’s Stricter Stance Against InfoFi Apps - What Happened?

Nikita Bier, head of product at X, announced that the platform will now accept applications offering direct financial incentives for posting. The reason is clear: a large wave of AI-generated content overwhelmed the platform. “AI slop and reply spam” Bier called the problem, and the response was decisive—programmatic access for affected developers has been disabled.

For many developers and startup founders, this has created uncertainty. Platforms like Threads and Bluesky are being explored as alternatives, but success is not guaranteed. X, despite its measures, remains the dominant social platform for the crypto community.

The Kaito Yapper community, which has approximately 157,000 members on X, is directly impacted. The restriction effectively became a ban for the community, marking a turning point for InfoFi-based products in the ecosystem.

Kaito Studios: The New Direction of Products

Yu Hu, founder of Kaito, announced a strategic pivot that will be a defining move for the platform. Yaps is not just canceled—it is replaced by a more structured and compliant approach. The new platform, called Kaito Studio, represents a shift from a permissionless, incentive-driven model to a more traditional, tier-based creator marketing framework.

Kaito Studio focuses on brand-creator partnerships, advanced analytics, and most importantly—cross-platform distribution covering beyond X. YouTube, TikTok, and other platforms will be core focuses, providing a diversification strategy that is not solely dependent on one platform.

Kaito’s vision is not limited to replacing Yaps. The platform will continue developing other products, including Kaito Pro, API services, Launchpad, and the highly anticipated Markets product. The KAITO token plays a central role in this new ecosystem, although specific mechanics are still awaiting formal announcement.

Market Reaction and Community Impact

The change was not absorbed by the market without reaction. The KAITO token experienced pressure following the announcement, with bearish sentiment increasing in the community. According to the latest market data as of February 2, 2026, the token traded at $0.36, with a 24-hour decline of -7.14%. Momentum shifted as the market processed the implications of Kaito’s strategic adjustment.

The 157,000-member Kaito Yapper community became a case study of how communities respond to platform restrictions. The disruption is real, but Kaito’s decisive action signals a willingness to adapt to the regulatory environment rather than remain stuck in an unsustainable model.

The Larger Narrative: InfoFi and Platform Governance

Kaito’s situation is not an isolated incident. The entire InfoFi (Information Finance) sector—where users are rewarded for creating and sharing valuable information and insights—is facing similar pressures. The concept is attractive in theory but challenging in practice, and X’s enforcement has highlighted tensions between innovation and platform responsibility.

For the crypto ecosystem, this serves as a reminder that sustainable growth requires alignment with platform policies and regulatory expectations. Projects heavily invested in single-platform strategies are particularly vulnerable, while those diversifying across multiple channels—like Kaito’s new direction—are positioning themselves with a strategic advantage.

Kaito’s journey will continue to be monitored, especially as Kaito Studio develops and market perception of the KAITO token evolves in the coming months.