The X platform's closure of the InfoFi application has directly impacted Kaito AI, which focuses on "mining through posting." Starting on the 14th, the price of $KAITO fell by approximately 20% within 24 hours. Co-founder Yu Hu also posted an explanation of the incident this afternoon.
Co-founder Yu Hu posted on the X platform that the team first received an email reminder from the account manager on January 13, which mentioned that the partnership might be "re-evaluated" in the future. They immediately replied to request further explanation.
The following day, January 14, Kaito received formal legal notice from X and responded with legal documents on the same day, also requesting clarification of details via telephone.
On January 15th, the team learned about the "turning off InfoFi" information from Nikita's post on X at the "same time" as other users.
Why wasn't an announcement made to the public immediately?
There has been external scrutiny regarding whether Kaito was too late in notifying them of the situation. Yu Hu explained that this was not the first time Kaito had received legal notices from X. In the past, after receiving such notices, they negotiated and signed new corporate agreements, ultimately "ending peacefully." Because of this precedent, when they received the "reassessment" notice and legal letter in a short period of time this time, the team preferred to wait for X to provide more explanations and room for negotiation, rather than unilaterally announcing the termination of cooperation before the situation was fully clarified.
Kaito Studio was already in the planning stages.
In response to external questions about whether Kaito has temporarily "switched" to other platforms, Yu Hu stated that the concept of Kaito Studio has been in preparation for "several months." Its main positioning is as a cross-platform content tool, aiming to support platforms such as TikTok and YouTube. Moreover, its application scope is not limited to the cryptocurrency field, but extends to a broader content ecosystem.
This new product is seen as a complement to the existing X product Yaps, rather than a simple replacement.
He pointed out that because they had previously collaborated with multiple community pilot users, covering both encrypted and unencrypted scenarios, Kaito had already prepared relevant briefings and operational materials. This allowed the team to explain the situation and propose new directions to the public in a short time after the X announcement.
Yaps will officially exit the market in 2026.
In his statement, Yu Hu explicitly mentioned that with these changes, Kaito plans to phase out its product Yaps on X, and in 2026, Kaito Studio will officially take over as the company's flagship cross-platform product. This means that Kaito's future operational focus will no longer be tied to a single social media platform, but will instead shift towards more diversified content and traffic sources.
Other business lines remain unchanged.
Although Yaps will be shut down gradually, Kaito emphasized that other existing services will continue to operate normally.
Yu Hu pointed out that this adjustment "will not affect" product lines such as Kaito Launchpad, Kaito Pro, Kaito API, and the upcoming Kaito Markets. In other words, the dispute with X mainly focuses on the Yaps product, rather than the overall business structure.
