Platform X, formerly known as Twitter, announced a radical change in its policy on the API for developers. It will no longer tolerate applications that reward users for publishing posts on X. This decision, announced by product chief Nikita Bier, aims to combat the spam plague generated by AI and bots.

What does that mean for the world of cryptocurrency?

The term "InfoFi" (from "information finance") became synonymous with cryptocurrency projects that build their value on social media interactions. These platforms offer tokens in exchange for activity on X – for example, for sleighs, retweets or comments. Users, often from developing countries like India, made small amounts of money on this, which drove mass publishing of content. As a result, X flooded a wave of low-quality posts, including spam generated by artificial intelligence, which aimed at maximising profits.

In the context of cryptocurrency, this change hits the heart of the business model of these projects. InfoFi was based on access to API X, which allowed automation and activity tracking. Without this, projects lose their foundation – they can no longer reward for posts, which undermines the sense of their tokens. This is not only a technical blockade, but also a signal that large platforms will no longer support models that degrade content quality for quick profit.

What exactly changed?

The change in X policy is simple – he explained Nikita Bier in his post, the platform withdraws access to APIs for all applications that promote "profit on information" by rewarding for posts. So far, these projects have paid X million dollars for advanced data access (Enterprise API), which was a lucrative source of income for the platform. Now X says no – even at the expense of losing those millions.

Effect? Instantly block development accounts and disable bots. Users should notice improved feed quality in the coming days when bots "know" that they will no longer receive prizes. Interestingly, X offers help in the migration of these businesses to competitive platforms such as Threads or Bluesky, which sounds like an ironic bow towards rivals.

What shares in the market have triggered this decision?

The market reaction was immediate and violent. Within hours of announcing tokens connected to InfoFi dived by 20-50%. For example:

Token KAITO fell by over 20%, losing millions in market capitalization.
Token Cookie DAO fell, also by over 20%.
Many other side tokens of InfoFi have also been affected

Important information for holders Crypto KAITO, tomorrow is planned to release more than 1.1 million tokens. It can very strongly affect the price of this Crypto.

It was no accident – these tokens drew value mainly from activity on X. When the "spam to earn" model (spam to earn) was blocked, investors panicked, seeing that the projects did not have real utility beyond artificial drive of interaction. The cryptocurrency market analysts described it as "the explosion of the SocialFi bubble". Millions of dollars in API fees on these projects became worthless, and X consciously gave up this revenue stream, placing on the quality of the platform. This shows how fragile some crypto-ecosystems are, dependent on external platforms.

Is that a good change?

Absolutely so – and for several reasons. Firstly, X returns to its roots as a "global city square", where content is to be authentic rather than mass generated for profit. Plague AI-slop (low quality content from bots) irritated users for months, lowering the platform value. This decision shows that X prioritises user experience over short-term gains, which is rare in big tech.

In the context of cryptocurrency, it's a healthy reset. InfoFi projects promoted a toxic model where the token value was based on spam rather than innovation. Their fall reveals weakness – if token loses half the value after one regulatory change, it was never solid. This is a lesson for the market: focus on real products, not artificial hype. In addition, this may stimulate the development of more ethical cryptic projects that do not rely on social media manipulation.

Of course, not everyone is happy. Users from poorer regions lose income and developers need to look for alternatives. But long-term is a win for the ecosystem – cleaner X means better discussions, including crypto ones.