📌 TOPINDIATOURS Breaking crypto: X API Ban Kills Kaito and InfoFi Crypto Projects:

X has revoked API access for apps that reward users for posting on the platform, effectively banning so-called “InfoFi” projects that paid users to generate engagement. 

Product lead Nikita Bier said the model created “a tremendous amount of AI slop and reply spam,” adding that the changes should quickly improve the quality of content once automated bots stop getting paid.

InfoFi Crypto Projects Collapse

The decision triggered an immediate sell-off across InfoFi tokens. Kaito, Cookie DAO, BubbledMaps, Loud, Arbus and several others fell sharply within hours as traders priced in the loss of their core distribution and growth engine.

In response, Kaito founder Yu Hu confirmed the company will sunset Yaps and its incentivized leaderboards and pivot to a new product called Kaito Studio. 

Cookie, another InfoFi platform, also announced it would shut down Snaps, its creator campaign system, after discussions with X about API and usage policies. 

The company said it remains an Enterprise API customer but could not operate reward-based posting programs under the new rules.

Crypto Twitter Can Breathe Again

The market reaction was swift because InfoFi tokens were built around monetizing attention on X. These platforms tracked posts, replies, and engagement, then distributed tokens or points to users who generated visibility for projects. 

Kaito’s Yaps system became the largest version of this model in crypto, driving hundreds of thousands of users, particularly in South Korea, according to the company.

However, the model had already come under strain. Kaito’s KAITO token launch in early 2025 sparked heavy backlash after users found that Yaps points converted into much smaller token allocations than expected. 

Critics also pointed to insider-heavy tokenomics and fast post-airdrop selling, which pushed the token lower and damaged trust in the incentive structure.

Those problems intensified as AI-generated content flooded X. Because Yaps rewarded volume and engagement at scale, bot networks and low-quality farms increasingly dominated leaderboards. This diluted genuine research and commentary.

X’s API crackdown now forces a hard reset. Many traders and creators welcomed the move, arguing that incentive farming had hollowed out organic crypto discourse.

The broader InfoFi sector now faces an existential shift as the attention economy on X moves from open tokenized rewards to curated, platform-compliant partnerships.

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📌 TOPINDIATOURS Eksklusif crypto: CLARITY Act Faces Uncertain Path After Senate De

The Senate Banking Committee delayed a vote on cryptocurrency market structure legislation amid growing industry resistance.

The long-anticipated bill was postponed Wednesday night after a late policy debate, following prominent industry figures’ withdrawal of support for the CLARITY Act, prompting the committee to halt proceedings.

Crypto Pushback Stalls Vote

The road to getting the CLARITY Act to the Senate has been one of great turbulence. Set for a vote by the Senate Banking Committee on Thursday, the bill has been delayed once again. 

After an initial release of the 278-page bipartisan proposal on Monday, the bill has received significant pushback. On Wednesday, Coinbase CEO Brian Armstrong announced that the company could no longer support the bill’s current version.

Armstrong argued that the draft “breaks key parts of market structure” and creates risks for tokenized equities, DeFi, stablecoins, and open crypto markets.

In light of these setbacks, many began to wonder whether the CLARITY Act would even reach the President’s desk before the end of the year. 

Looking past these complications, Senate Banking Committee Chair Tim Scott maintained optimism over the bill’s passage. 

“I’ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith,” Scott said in a social media post. 

So far, Coinbase has been the only major crypto player to oppose the current version of the bill. Nonetheless, it continues to face generalized friction.

Political Friction Threatens Crypto Bill Timeline

Despite broad opposition to the market structure legislation, the bill retained support from several major crypto stakeholders.

According to journalist Eleanor Terrett, the proposal has received backing from firms including Circle, Ripple, Kraken, and a16z. Non-profit organizations such as The Digital Chamber and Coin Center also supported the bill.

Even so, the legislation faces a difficult path forward. 

Industry frustration has intensified amid concerns that recent amendments concede too much ground to banks and traditional finance, particularly around stablecoin yield and tokenization.

At the same time, some Democrats have raised objections over the absence of ethics provisions for senior government officials, including the President. Sources familiar with the discussions say Democrats are also seeking to close loopholes related to tokenization and national security.

Although early expectations suggested the bill could get passed by March, ongoing political and industry disputes may significantly delay that timeline.

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