Kaito Faces Backlash Over AI-Driven Content Algorithms and ’Yap-to-Earn’ Model Amid Creator Concerns
Kaito, an AI-powered Web3 information aggregator backed by major investors such as Dragonfly and Sequoia, was initially recognized for its innovative InfoFi approach, rewarding users for sharing crypto insights through its ’Yaps’ program. Users, known as Yappers, could earn points and KAITO-based rewards by posting valuable crypto content on X. While the system aimed to incentivize high-quality, original posts and foster community-driven content, recent developments have drawn criticism from creators and market observers. The platform’s reliance on AI content evaluation algorithms and a leaderboard system reportedly promotes homogenous, low-value content, favoring top influencers and discouraging emerging voices. Key opinion leaders and ordinary users now claim it’s difficult to achieve visibility or meaningful rewards without high-profile connections, resulting in decreased content quality and creator dissatisfaction. Operational hiccups, such as the hacking of founder Yu Hu’s X account and backend data issues, have further eroded trust in Kaito’s platform stability. Although Kaito’s AI claims to identify valuable Web3 content, the rewards mechanism is allegedly easy to manipulate, raising questions about the platform’s ability to genuinely reform the crypto information landscape. These controversies have cast uncertainty over the future of KAITO tokens, creator engagement, and the platform’s reputation. For crypto traders, sustained debate and community unrest could impact KAITO token liquidity, market awareness, and short-term price behavior.
Bearish
The recent negative publicity surrounding Kaito’s AI-driven content algorithms and the associated ’Yap-to-Earn’ model has fostered community dissatisfaction, particularly among content creators. Reports of declining content quality, manipulation of rewards, and operational mishaps undermine trust in the platform and challenge the credibility of its incentive system. Historical market behavior suggests that such controversies can lead to decreased user engagement, reduced token liquidity, and downward pressure on token prices in the short term. Although the project initially saw strong KAITO token resilience, ongoing criticism increases the risk of further price instability until issues are addressed and community confidence is restored.