The InfoFi sector is based on an economic model that is supposed to reward the creation of content related to current events. This activity does not seem to suit Platform X, which has just announced its intention to exclude these protocols.
The X network announces the exclusion of InfoFi protocols
Many economic models are developing in more or less direct connection with decentralized finance (DeFi), such as the sector known as Information Finance, better known by the acronym “InfoFi.” This is a way of transforming information into a tradable financial asset, notably driven by projects such as Kaito.
This trend was identified in Tiger Research’s annual report on the main crypto narratives of 2025, with a peak in March. There are already serious doubts about its associated reward system, which will quickly encourage its beneficiaries to “prioritize sensationalism over accuracy.”
Clearly, this criticism also seems to be shared by the product manager for the X platform, Nikita Bier. The problem? Her position allows her to announce at the same time a “review of developer API policies” that involves the outright rejection of these protocols.
We will no longer allow InfoFi apps that reward users for posting on X. This has led to too much low-quality AI-generated content and spam responses on the platform.
Nikita Bier
It takes a lot to trigger the X network’s spam and content quality limit. Nikita Bier took the opportunity to announce that revoking these apps’ APIs will allow “your experience on X to start improving rapidly (once the bots realize they are no longer being paid).”
KAITO token plummets more than 20%
This is a cataclysmic announcement for the InfoFi sector, which is now banned from publishing on the X platform, although Nikita Bier says that developers whose accounts have been terminated can receive support to “transition [their] business to Threads and Bluesky.”
Just look at how the price of KAITO, the native token of the leading protocol in this sector, has just plummeted by more than 20% just minutes after Nikita Bier’s official announcement.
At the same time, the largest unstaking of this protocol (1.1 million KAITO) is due to take place today, even though the exit period involves a 7-day wait. This prompted the X Vasucrypto account to wonder whether the protocol’s members already knew what was going to happen.
And what about other protocols, such as Cookie DAO, which has announced its intention to “close Snaps and all active campaigns, effective immediately” following apparently unsuccessful discussions with the X team, even though a window for negotiation apparently remains open regarding the possibility of “continuing to operate in a new form.”
Perhaps worst of all is the Noise protocol—implemented on the Base layer 2—which had just announced a $7.1 million seed funding round led by Paradigm on January 14 to support the development of its “attention market” and the imminent launch of its mainnet.
