X Shuts InfoFi; Kaito Says Yaps to Sunset, Shift to Cross‑Platform Kaito Studio as $KAITO Drops 20%
X (formerly Twitter) blocked InfoFi applications, prompting a sharp market reaction for Kaito. Kaito’s $KAITO fell about 20% within 24 hours after X revoked API/access tied to InfoFi features. Co‑founder Yu Hu detailed the timeline: Kaito received a cautionary email from an X account manager on Jan 13, a formal legal notice on Jan 14, and only learned of X’s public InfoFi shutdown alongside other users via a Jan 15 post. Kaito delayed a public statement while awaiting clarification because previous legal notices had been resolved via negotiation. The team says Kaito Studio — a months‑in‑planning, cross‑platform content tool aimed at TikTok, YouTube and non‑crypto creators — is not a sudden pivot but the planned successor to Yaps. Kaito will sunset Yaps in 2026 and reposition its product strategy away from dependence on a single social platform. Other product lines (Kaito Launchpad, Kaito Pro, Kaito API, forthcoming Kaito Markets) remain operational. Immediate market effect: token price volatility and reputational risk for InfoFi/social mining models; strategic response is diversification into creator‑economy tools beyond X. Keywords: Kaito, InfoFi, X platform, $KAITO, Yaps, Kaito Studio, creator economy, API access, token price drop.
Bearish
X’s unilateral closure of InfoFi access directly undermines social‑mining and reward models that many tokens (including $KAITO) depended on. The immediate 20% drop in $KAITO reflects loss of utility and on‑chain/off‑chain demand tied to Yaps features. Short term: expect elevated volatility, sell pressure from users and liquidity providers reassessing token fundamentals, and possible stop‑loss cascades as market confidence weakens. Mid to long term: impact depends on Kaito’s execution of Kaito Studio and diversification. If Kaito successfully migrates users to cross‑platform products and rebuilds utility beyond X, adverse effects could be mitigated; failure to regain user engagement or revenue streams would prolong bearish sentiment. Comparable events: prior platform bans (e.g., API restrictions or deplatforming incidents) have triggered sharp token or project valuation drops, followed by either gradual recovery if teams pivot successfully or sustained declines if network utility cannot be restored. Traders should monitor on‑chain activity for token outflows, liquidity pool changes, official updates on Kaito Studio rollout, partnership announcements, and any regulatory or platform‑level clarifications from X. Risk management: expect continued downside risk until tangible user migration and new revenue channels materialize.