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X (formerly Twitter) has revoked API access for InfoFi apps that reward users for posting, with Product Lead Nikita Bier announcing the change on January 15, 2026 to combat a surge in AI-generated spam and low-quality replies, signaling a broader platform push toward meaningful engagement over volume farming.
Bier, who was embroiled in a CT tweet storm on January 12, 2026 explained in his tweet that InfoFi, apps like Kaito and Cookie that pay for content, has “caused a surge in AI-generated slop and reply spam,” degrading user experience. The policy update prohibits apps that incentivize posts, with Bier offering transition assistance to developers moving to competitors like Threads or Bluesky if accounts are terminated. The announcement led to immediate token drops; Kaito fell over 19% and Cookie 20% within hours, reinstating market sensitivity to X’s role in the ecosystem.
We are revising our developer API policies:
We will no longer allow apps that reward users for posting on X (aka “infofi”). This has led to a tremendous amount of AI slop & reply spam on the platform.
We have revoked API access from these apps, so your X experience should…
— Nikita Bier (@nikitabier) January 15, 2026
The ban targets a core Crypto Twitter (CT) mechanic, where reply spam like “gm” or “totally agree” has proliferated to earn rewards, consuming limited daily reach budgets and burying substantive content. For advanced users and builders, this means cleaner feeds but potential loss of discovery tools, InfoFi apps amassed user data that could pivot to off-platform analytics, though their edge in real-time engagement is now compromised.
Kaito’s model, rewarding “high-signal” posts, ironically degraded quality as users gamed systems. The ban follows in the direction towards X’s long-form content shift under Elon Musk, which also saw Bier announce plans to rollout Smart Cashtags to map crypto tickers to assets.
While the ban has been generally greeted with positive sentiments, some CT communities argue it ignores their unique needs for rapid sentiment gauging. In response, InfoFi apps and campaigns are already shutting down or reevaluating their model to align with the ban. Cookie DAO, in a statement on XX, announced that it was time to close its Snap platform after discussion with X team about their API use.
InfoFi is changing, and it’s time to sunset Snaps.
This is our official announcement. pic.twitter.com/fUIzTZpTa8— Cookie DAO 🍪 (@cookiedotfun) January 15, 2026
Cookie’s announcement has already sparked outrage amongst its user base.
what do they mean by close all the sudden?
what about the people who has invest/burn til now?
what about running projects where we have invested?
i don't get this https://t.co/3pY8RUULKE
— nyk (@0xNykkk) January 15, 2026
X’s InfoFi ban is a pragmatic response to spam degradation, but for crypto users, it risks fragmenting a vital discovery network where rapid replies often spark real-time alpha. The policy improves feed quality for passive consumers, reducing noise from “gm” chains. However, the move may yet see active traders migrate to Discord or Telegram for reward-driven interactions.
Balanced against X’s well-stated business model, prioritizing premium content, it’s looking like a win for long-term usability, though the lack of CT-specific carve-outs shows platform priorities leaning towardss general audiences over niche communities. As Bier notes, the change “will improve user experience once bots stop,” but success depends on whether it spurs genuine interaction or accelerates exodus.
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