Kaito is retiring its Yaps product after losing access to the X API. The project will continue with other products and incentive structures.
Kaito, one of the most prominent InfoFi projects, will close its Yaps product. The incentive to post on social media will be lost to influencers and users, as X targeted the content for automated bot posting.
Kaito is just one casualty among InfoFi projects, but the platform will be able to focus on other products. During its airdrop stage, Kaito used X to build up its leaderboard of active posters and influencers.
“Over the past year, we experimented with tighter eligibility, higher threshold in leaderboards, social + onchain filters and different incentive designs. However – intertwined with platform-wide X algorithm changes, and other InfoFi projects going live with varying degrees of thresholds (some with none), issues of low quality and spam largely remained across the broader crypto space,” wrote the founder of Kaito Yu Hu.
Kaito was one of the key venues to build crypto communities, with many projects using Yaps for marketing. The social media posting model built up mindshare for new tokens, which lacked the communities from previous bull cycles.
At the same time, Kaito and other projects were aware of the low-quality content, which made X change its mind on crypto activities.
Kaito will limit permissionless posting
The restriction on permissionless posting for InfoFi will not remove influencers and KOLs entirely. However, Kaito will handle the curation of personalities more strictly, creating a tiered structure that is more similar to traditional marketing.
“Top and emerging high-quality creators will stand to benefit far more in a relevance- and analytics-based model rather than open incentives – benefitting those high-quality creators who already use Kaito and those who previously felt we were detached from them,” explained Yu Hu.
Kaito will still have cross-platform reach, retaining a presence on X, as well as TikTok and YouTube.
The campaign against crypto InfoFi projects on X coincided with a drop in general viewership. As Cryptopolitan reported earlier, YouTube viewership for crypto channels is down to a five-year low.
Kaito still values the creator market at $20B and will seek new forms of marketing. Yu Hu also remarked that the crypto economy of tokenizing interactions may not be viable, as chains have turned into infrastructure for finance.
InfoFi projects are all in the red
After the news of closing Yaps, KAITO tokens crashed further, trading at $0.54, close to their all-time lows of $0.49.
KAITO retained its losses, trading near its all-time lows after InfoFi projects lost access to the X API. | Source: CoinGecko.KAITO’s market capitalization fell to $185M, around 50% of the total market’s value. The total market cap of InfoFi projects crashed to $355M, one of the smallest sectors in the crypto space.
The removal of InfoFi reflected the position of X on advertising, where third parties hired influencers and bypassed the social media’s advertising process. Smaller projects also closed their products. The shift from InfoFi may generate new types of incentives and point farming.
If you’re reading this, you’re already ahead. Stay there with our newsletter.
Source: https://www.cryptopolitan.com/kaito-retires-yaps-as-token-falls/
