The InfoFi sector is based on a business model designed to reward the creation of news-related content. This activity does not seem to sit well with the X platform, which has just announced its intention to ban these protocols.
The X network announces the exclusion of InfoFi protocols
Many business models are emerging with a more or less direct link to 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 like Kaito.
A trend identified in Tiger Research’s annual report on the major crypto narratives of 2025, peaking in March. And already, serious doubts have been raised about its associated reward system, which will quickly encourage its beneficiaries to “prioritize sensationalism over accuracy.”
Clearly, this criticism also appears to be shared by Nikita Bier, the product manager for the X platform. The problem? Her position allows her to simultaneously announce a “review of developer API policies” that effectively rejects these protocols outright.
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 replies on the platform.
Nikita Bier
It must indeed take a lot to trigger X’s spam and content quality limits. This gave Nikita Bier the opportunity to announce that revoking these apps’ APIs will allow “your experience on X to start improving rapidly (once the bots realize they’re no longer getting paid).”
The KAITO token plummets by over 20%
A cataclysmic announcement for the InfoFi sector, now banned from publishing on the X platform, even though Nikita Bier notes 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 sector’s leading protocol, has just plummeted by over 20% just minutes after Nikita Bier’s official announcement.
The KAITO token plunges by over 20% in a matter of minutes
At the same time, the largest unstaking of this protocol (1.1 million KAITO) is set to take place today, even though the withdrawal period requires a 7-day wait. This led the X account Vasucrypto to wonder if protocol members already knew what was coming.
And what about other protocols, such as Cookie DAO, which announced its intention to “shut down Snaps and all active campaigns, effective immediately” following apparently fruitless discussions with the X team, even though a window for negotiation remains open regarding the possibility of “continuing to operate in a new form.”
Perhaps the worst-hit is the Noise protocol—built 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.
