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flag X restricts crypto "infoFi" apps using token incentives, citing spam, causing major token drops.

flag X has restricted API access for crypto-based "infoFi" apps that incentivize user engagement with tokens, citing a surge in AI-generated spam and low-quality content. flag The move, announced by X’s head of product Nikita Bier, targets automated posting systems used by crypto communities to boost visibility. flag Affected projects saw sharp declines in value, with tokens like KAITO dropping nearly 20%. flag While X aims to improve user experience and reduce spam, the ban has sparked mixed reactions, with some supporting the crackdown and others criticizing the impact on creator-driven revenue models.

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