Kaito shutters Yaps after X API ban; KAITO tumbles amid insider-transfer concerns
Kaito announced it is winding down Yaps — its rewards-for-posting product — after losing X (formerly Twitter) API access following X’s ban on apps that incentivize posting. Yaps represented roughly 70% of KAITO token utility and linked about 157,000 accounts, producing an immediate demand shock. KAITO fell roughly 19–24% intraday, trading around $0.545 and approaching its December low near $0.4717, while 24-hour volume spiked above $153 million. On-chain analysts flagged a wallet tied to the Kaito team that moved 5 million KAITO (~$2.7m) to Binance seven days before the public announcement, raising insider-trading and information-asymmetry concerns. Technically, KAITO broke key support at $0.60, momentum indicators turned negative, and the next major floor sits near $0.47; failure to reclaim $0.60 — and especially a drop below $0.50 — could prompt retests of the low. Kaito says it will replace Yaps with a tiered Kaito Studio focused on higher-quality creators and onboarding other platforms (YouTube, TikTok), reducing reliance on token incentives. However, the extent to which KAITO retains demand under the new model is unclear. Traders should watch team disclosures about the Binance transfer, on-chain flows, reclaim of $0.60 as resistance, and volume spikes for signs of capitulation or recovery.
Bearish
The news is broadly negative for KAITO price. The immediate trigger — X’s ban on incentivized posting and the shutdown of Yaps, which provided ~70% of KAITO’s utility — removes a primary on-chain demand driver and caused a sharp drop in price and volume spikes. Technicals confirm downside pressure: KAITO broke the $0.60 support, momentum indicators turned bearish, and the next meaningful floor is near $0.47. The on-chain transfer of 5 million KAITO to Binance ahead of the announcement raises insider-selling concerns; that increases perceived sell pressure and erodes investor trust, making sustained buy-side support less likely in the near term. Short-term impact: elevated volatility, higher likelihood of retesting the December low if $0.60 is not reclaimed and especially if $0.50 breaks. Long-term impact: depends on whether Kaito Studio can create clear, token-driven utility and whether the team transparently addresses the Binance transfer. Without credible demand pathways and transparent communication, the token’s recovery prospects remain weak, keeping the bias bearish for traders focused on price action.