Kaito Faces Strategic Crossroads Amid InfoFi Collapse

News Flash 2026-01-20 16:01

Kaito, a leading project in the InfoFi ecosystem, is evaluating strategic options following the collapse triggered by X platform's API policy changes. The sudden policy shift, announced by X platform product lead Nikita Bier, prohibited apps from incentivizing user content through rewards, effectively dismantling the InfoFi ecosystem within three days. This has exposed the vulnerability of Web3 projects heavily reliant on centralized platforms. Kaito and other InfoFi projects are considering five potential paths: complete shutdown, transformation into a bounty-funded platform, adoption of a Korean-style sponsorship model, expansion across multiple platforms, or evolution into a KOL management model akin to MCNs. The future of InfoFi, dubbed "InfoFi 2.0," may involve more refined and controlled models, focusing on high-quality collaboration and overcoming challenges in incentive systems and token value validation. The collapse highlights the irony of decentralization, as many Web3 projects depend on centralized platforms like X. The need for a sustainable business model and fair incentive structure is critical for the survival of InfoFi 2.0, as projects must address fundamental issues to align with token holders' interests and ensure long-term viability.

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This content is for informational purposes only and does not constitute investment advice.

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