X's regulatory measures lead to the termination of Kaito's Yaps service and the subsequent market response.

The cryptocurrency information analysis platform Kaito has officially announced the termination of its Yaps service. This decision comes as a result of X (formerly Twitter) product manager Nikita Bier recently tightening policies on incentive-based applications.

Policy Shift Triggered by Surge in AI Spam

The X platform has decided to no longer permit apps where users are rewarded for posting content. Nikita Bier pointed out that the rapid increase in AI-generated content and spam replies was a major reason for this change, leading to the immediate revocation of programming access for these applications. This is understood as a phased measure to prevent deterioration of user experience.

Kaito’s Decision to End Yaps Service

Kaito founder Yu Hu, after discussions with X, determined that it is currently difficult to sustain an unauthorized incentive distribution model under existing restrictions. As a result, Kaito has decided to fully shut down the Yaps service and the incentive leaderboard. This service was a key example in the InfoFi sector, where users could post about specific projects or brands and receive token rewards.

Community Ban and KAITO Token Fluctuations

According to blockchain investigator ZachXBT, the Kaito Yapper community, which has approximately 157,000 members, was disbanded on X immediately following the policy change. Following this news, the KAITO token plummeted by about 17% at the time of announcement and has since maintained a 10.45% decline over the past 24 hours. Despite a large user base and high engagement, the sudden policy shift directly impacted the market.

Strategic Shift to Kaito Studio

Kaito is preparing a new platform called ‘Kaito Studio’ to replace Yaps. Moving away from the unauthorized incentive model, it will transition to a more systematic and traditional creator marketing-focused structure. Kaito Studio emphasizes curated brand-creator partnerships, detailed analytics, and multi-channel distribution across platforms such as X, YouTube, TikTok, and others.

Impact on Core Products

Kaito clearly stated that the shutdown of Yaps will not affect other major products such as Kaito Pro, API, Launchpad, and the upcoming Markets. The KAITO token will continue to play an important role in the new Studio model, with detailed implementation plans to be announced later. Some developers are considering migration to alternative platforms like Threads and Bluesky.