X’s API Ban Halts Cookie’s InfoFi Reward Campaigns
X (formerly Twitter) banned InfoFi-style engagement-for-rewards mechanics and closed the relevant API access, forcing Cookie to immediately stop its $COOKIE reward campaigns. Cookie had been rewarding users for posting, engaging and spreading content on X; the platform change removed the core distribution and engagement loop, leaving campaigns impossible to run without API access. The project ceased campaigns openly rather than continuing covertly. No evidence in the article of a rug pull or token disappearance was reported. The abrupt policy shift eliminated Cookie’s growth mechanism and created operational uncertainty for similar tokenized attention/reward projects.
Bearish
The news is bearish for token projects that depend on platform APIs and engagement-for-rewards mechanics. Cookie’s immediate halt demonstrates a direct operational risk: when a major social platform changes policy and restricts API access, distribution channels and demand drivers for attention-tokens collapse. Short-term effects likely include sell pressure from users who expected continued rewards, reduced on-chain activity tied to campaigns, and heightened risk premiums for similar InfoFi projects. Historically, platform delistings or API closures (e.g., past Twitter/X API changes impacting third-party apps and bots) have led to rapid declines in related token usage and speculative interest. In the longer term, projects may pivot to alternative channels (owning on-chain engagement rails, moving to other platforms, or redesigning incentive mechanics), but that transition takes time and funding; until then, market confidence in InfoFi tokens will be lower, reducing fundraising and secondary market liquidity. Traders should expect volatility and potential downside for $COOKIE and closely related tokens, monitor on-chain activity and official project communications, and be cautious entering positions until a clear recovery plan or alternative distribution method is announced.