AI-Powered Crypto Platforms Hit by X's New Policy
Following X's move to curb AI-generated spam, platforms like Kaito.ai and Cookie DAO have been forced to shut down their incentivized content models on the social media platform.
Kaito and Cookie DAO Shift Strategies
After Nikita Bier, X's product head, announced the ban on apps rewarding users for posting, Kaito quickly responded by phasing out its Yaps feature. Similarly, Cookie DAO also confirmed the shutdown of its Snaps service, which had incentivized user engagement.
Token Prices Plummet
The news triggered a sharp decline in the value of both KAITO and COOKIE tokens, reflecting market concerns over the sustainability of reward-based crypto models.
- AI-generated posts flooded the platform
- Reward mechanisms now defunct
- API access revoked
This marks a significant step in X's campaign against AI spam and highlights risks for crypto projects reliant on engagement incentives.