Elon Musk’s X Cracks Down on Crypto Posting Rewards

Elon Musk’s X has stopped crypto initiatives from paying customers to submit content material in trade for tokens, as product chief Nikita Bier stated these reward apps have brought on an excessive amount of spam and low-quality AI posts.

X has now eliminated their API entry, which means bots and customers can now not earn cash simply by posting. After the announcement, the KAITO token dropped about 15%, falling from round $0.70 to $0.57.

KaitoAI founder Yu Hu stated the corporate will shut down its “Yaps” rewards and leaderboard system. Kaito is now transferring to a brand new mannequin referred to as Kaito Studio, which is able to concentrate on higher-quality creators and higher model partnerships as a substitute of mass reward applications.

We’re revising our developer API insurance policies:

We are going to now not enable apps that reward customers for posting on X (aka “infofi”). This has led to an amazing quantity of AI slop & reply spam on the platform.

We’ve got revoked API entry from these apps, so your X expertise ought to…

— Nikita Bier (@nikitabier) January 15, 2026

Hu defined that Yaps was meant to reward individuals pretty primarily based on their contributions. Over time, Kaito added stricter guidelines and filters to cut back spam. Nonetheless, spam nonetheless elevated on X as a result of different initiatives had weaker guidelines, and X’s algorithm modifications allowed low-quality posts to unfold.

Kaito Shifts to Focused Creator Rewards

Many cryptocurrency initiatives utilized Kaito to advertise their tokens and entice customers, significantly in South Korea. Nonetheless, Hu stated the cryptocurrency business is evolving. As an alternative of massive airdrops and open reward techniques, initiatives now choose focused incentives that reward particular actions.

Kaito Studio will use a tier system the place manufacturers work with chosen creators primarily based on information and relevance. It can additionally broaden to different platforms like YouTube and TikTok, and later into non-crypto industries.

Hu confirmed that Kaito’s different merchandise, akin to Kaito Professional, API, Launchpad, and Markets, is not going to be affected. The KAITO token will nonetheless be used within the new system.

The transfer brought on combined reactions within the crypto neighborhood. Some consultants blamed AI spam campaigns for the issue, whereas others praised X for cleansing up pretend engagement and enhancing content material high quality.

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