Token incentive model gets hit as X cracks down—$KAITO drops 13.6% in the aftermath.

X's recent policy shift against InfoFi applications that reward users for posting and engagement has sent shockwaves through related projects. KAITO, which operates within that ecosystem incentive structure, took a sharp hit following the announcement.

This highlights the real risks when token utility depends heavily on platform mechanics that could shift overnight. While some saw KAITO as a novel take on social-driven tokenomics, X's stricter stance on incentivized content creation has essentially pulled the rug on that thesis.

The broader question: how many other projects have their growth story tied to policies beyond their control?