Kaito Shuts Down Yaps After X Bans Reward-Based Posting Apps

• X removed API access for apps that pay users to post, triggering immediate bans and enforcement.

• Kaito’s Yaps model fueled growth but also drove spam and AI-generated content on X.

• Kaito will replace Yaps with Kaito Studio, focused on curated creator and brand partnerships.

• $KAITO fell over 14% as investors reacted to the shutdown and uncertainty around the new model.

Kaito Shuts Down Yaps After X Bans Reward-Based Posting Apps

Crypto analytics platform Kaito is shutting down its Yaps product after X banned apps that reward users for posting. Policy changes at the social media company have forced a rethink of incentive-driven content models tied to its API. News of the decision triggered a sharp sell-off in the $KAITO token and raised fresh questions about the future of InfoFi projects built around social platforms.

Reward-Based Posting Faces Setback After X Policy Update

Kaito confirmed the decision days after X updated its developer API rules to block applications that financially reward posting. According to X’s head of product Nikita Bier, the change targets a rise in automated replies and low-quality content, much of it generated by bots. 

Bier said affected apps already lost programmatic access and added that developers could move projects to alternatives such as Threads and Bluesky.

Blockchain investigator ZachXBT reported that the Kaito Yapper community on X, which had about 157,000 members, was banned soon after the policy update. The group had played a key role in spreading rewarded posts tied to Yaps campaigns.

Yaps allowed users to earn tokens or points by posting about crypto brands and projects. While the model drew hundreds of thousands of users, especially from Korea, it also led to heavy use of AI-generated posts. X has linked InfoFi-style systems to growing spam and declining content quality on the platform.

Kaito to Replace Yaps With Creator-Focused “Kaito Studio”

Key changes linked to X’s policy update include:

• Removal of API access for apps that pay users to post.
• Immediate enforcement rather than phased rollout.
• Bans on large reward-based posting communities.
• Push for cleaner timelines and fewer automated replies.
• Open invitation for developers to migrate to rival platforms.

Kaito founder Yu Hu said the shutdown followed talks with X and admitted that open, reward-driven distribution no longer works under current rules. He added that the company would move away from permissionless posting incentives.

In place of Yaps, Kaito plans to launch “Kaito Studio,” a creator marketing product built around curated brand and creator partnerships. The new model will focus on analytics and multi-platform campaigns beyond X, including YouTube and TikTok. 

Kaito said other services, such as Kaito Pro, its API, Launchpad, and the upcoming Markets product, will remain unchanged. The $KAITO token will still be used in the new setup, though details are pending.

Following the announcement, $KAITO dropped between 14% and 17%. The token traded near $0.59 at press time, according to market data. Market cap stands near $140 million. Meanwhile, the fully diluted valuation stands at $586 million, down sharply from its near $2 billion peak after the February 2025 airdrop.

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