Elon Musk's X Bans Access to ‘InfoFi’ Crypto Projects Amid ‘AI Slop’ Backlash
Analysis
Price Impact
HighElon musk's x (formerly twitter) has banned 'infofi' crypto projects from its platform by revoking api access, citing 'ai slop' and reply spam. this directly undermines the core utility and value proposition of projects that reward users for posting on x, as exemplified by kaito's token price dropping over 15% immediately after the announcement.
Trustworthiness
HighThe announcement comes directly from nikita bier, head of product at x, indicating an official policy change. the immediate and significant price drop of kaito's token confirms the market's reaction to this news.
Price Direction
BearishThe removal of the ability to reward users for x engagement eliminates the fundamental mechanism for 'infofi' projects. this loss of utility and potential revenue model is a severe blow to these projects, leading to strong selling pressure and a collapse in their token values.
Time Effect
ShortThe immediate price reaction for directly affected 'infofi' tokens (like kaito) is short-term and severe. while the long-term viability of these specific projects is now highly questionable, the broader crypto market's reaction is likely to be contained to this niche sector.
Original Article:
Article Content:
Elon Musk’s X is taking action against projects that seek to financialize users’ attention on the platform using digital assets, Head of Product Nikita Bier declared on Thursday. “We will no longer allow apps that reward users for posting on X,” he said . “This has led to a tremendous amount of AI slop [and] reply spam on the platform.” As part of the initiative, Bier said that X had revoked API access for so-called InfoFi projects, arguing that users’ experience on the platform “should start improving soon” as bots become aware that their activity is no longer generating income. We are revising our developer API policies: We will no longer allow apps that reward users for posting on X (aka “infofi”). This has led to a tremendous amount of AI slop & reply spam on the platform. We have revoked API access from these apps, so your X experience should… — Nikita Bier (@nikitabier) January 15, 2026 Bier’s statement included a call to people that had their developer accounts terminated, offering assistance with transitioning them to Meta’s Threads or Bluesky, the decentralized alternative to X that gained traction after Musk’s acquisition of Twitter in 2022. Kaito, a project that’s become synonymous with InfoFi following its debut last February, saw its native token nosedive following the announcement. Changing hands around $0.58, the token’s price dropped over 15% within 30 minutes of Bier’s statement, according to CoinGecko . Editor's note: This story is breaking and will be updated with additional detail. Daily Debrief Newsletter Start every day with the top news stories right now, plus original features, a podcast, videos and more. Your Email Get it! Get it!