The Kaito Network’s native token ($KTO) experienced a massive downturn today, plunging over 40% following an unexpected announcement from X (formerly Twitter) regarding significant revisions to its API access policies. The updated terms explicitly prohibit the use of X data for ‘Information Finance’ (InfoFi) crypto projects—those that aggregate social data for trading signals, market sentiment analysis, or index construction.
X’s new policy targets high-volume automated access used by decentralized finance (DeFi) platforms attempting to monetize real-time social data feeds. While X has long restricted mass scraping, the new language directly targets the core business model of InfoFi platforms, many of which rely heavily on X to feed their AI models with sentiment indicators derived from millions of daily posts.
Kaito Network, a prominent layer in the InfoFi ecosystem, is considered highly exposed to this policy shift. Its platform heavily leverages X data to power its predictive AI and decentralized intelligence layer. The immediate market response was panic selling, driven by fears that Kaito’s primary data source has been severed, severely hampering its operational capability and rendering its core utility useless until a stable, alternative data feed can be secured.
Analysts suggest that this move by X represents a wider crackdown on unauthorized commercial use of its platform data, forcing crypto projects reliant on external social metrics to rapidly pivot their data acquisition strategies or face obsolescence. The path forward for Kaito will involve difficult integration challenges as it seeks proprietary or licensed data streams to restore investor confidence.
Source: Kaito token plummets after X revises API policies to ban InfoFi crypto projects
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