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X (formerly Twitter) has officially revoked API access for Information Finance (InfoFi) applications, effectively banning the “post-to-earn” model on the platform.
The move comes as a direct response to a massive increase in “AI slop” and “reply spam” generated by users trying to farm crypto rewards. This means the era of web3 projects rewarding users specifically for engaging or posting on X has effectively come to an end.
X Aims to Fight Increasing AI Slop, Reply Spam
The policy shift was announced by Nikita Bier, X’s Head of Product.
Bier emphasized that the platform has revised its API policies to specifically target automated and incentivized spam. He predicted that the user experience on X “should start improving soon” once bot operators realize they are no longer getting paid for their activity.
However, Bier offered a bridge for affected developers, stating that InfoFi projects could reach out to the X team for assistance in transitioning their schemes to other platforms like Threads and Bluesky.
What is InfoFi?
Information Finance (InfoFi) is a sector of web3 that monetizes attention and data.
- The Model: Projects reward users with tokens for curating content, searching for information, or engaging with specific posts (e.g., “Yapping” or “Snapping”).
- The Issue: While intended to surface quality information, the financial incentives often led to users deploying AI bots to mass-reply and farm rewards, degrading the experience for normal users.
Web3 Projects Halt Operations
Major InfoFi projects responded almost immediately to the API revocation.
1. Cookie DAO (Snaps)
Exactly 10 minutes after Bier’s announcement, Cookie DAO released a statement announcing the immediate “sunset” of Snaps, a feature designed to reward users for engaging with ecosystem projects.
“We always believed we were compliant with X rules and policies. Given where we’re at now, InfoFi is likely to undergo a significant shift. We will await X’s confirmation and guidelines on whether creator campaigns like Snaps can function in any future form.”
Cookie DAO
Cookie DAO defended itself against allegations of bot activity, noting that it uses official data sources for its leaderboards. However, as a Twitter Enterprise API client, it must remain compliant with the new policies.
2. Kaito AI (Yaps)
Yu Hu, founder of the AI-powered search engine Kaito AI, also admitted that the industry has shifted. He noted that crypto marketing is moving away from “high-volume, global distribution” toward more targeted approaches.
“Yaps aimed to enable permissionless access for users and creators to get rewarded for their role in pushing forward the presence of brands. It embodied the core web3 ethos—freely accessible, fully public, and purely merit-based.”
Yu Hu, Founder, Kaito AI
Hu acknowledged that while Kaito implemented strict filters (eligibility thresholds, onchain verification), other InfoFi projects with minimal barriers had promoted low-quality content and spam simply to farm points.
The Aftermath: Tokens Crash
The market reaction was swift and brutal. Within 15 hours of the announcement, key InfoFi tokens saw double-digit losses:
- KAITO (Kaito AI): Crashed to $0.54 (-20.4% in 24 hours), down from the $0.70 mark.
- COOKIE (Cookie DAO): Dropped to $0.036 (-17.9% in 24 hours), down from the $0.045 mark.
This article is published on BitPinas: X Bans InfoFi Apps That Paid Users to Post, Citing Spam Surge
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