Kaito shuts down Yaps after X bans paid crypto posts

X has banned crypto and AI platforms from paying users to post content, citing concerns over rising “AI slop” and reply spam.

“We will no longer allow apps that reward users for posting on X (aka ‘infofi’),”

Nikita Bier said.

“This has led to a tremendous amount of AI slop and reply spam on the platform,”

He added.

Following the announcement, Kaito said it would wind down its crypto-backed “Yaps” product that rewarded posts on X.

Cookie DAO also confirmed it would sunset its similar “Snaps” product in response to the policy change.

The Yaps and Snaps programmes rewarded users with points, tokens and airdrops for posting and engaging with crypto-related content.

The decision triggered sharp market reactions, with KAITO and COOKIE tokens falling more than 15% shortly after the ban.

CoinGecko data showed KAITO dropped 17.7% to $0.57, while COOKIE declined 15.5% to $0.038.

X said it would support affected applications that choose to migrate their services to other social media platforms.

The ban also sparked speculation after more than one million KAITO tokens were scheduled to be unstaked, far above normal levels.

At the time of reporting, KAITO price was $0.5411.