X's sweeping ban on InfoFi applications has landed hardest on Kaito AI, the token-gated 'post-to-earn' platform. $KAITO dropped roughly 20% within 24 hours starting January 14. Kaito co-founder Yu Hu posted a detailed thread on X explaining exactly what happened.
Three Days of Emails: From 'Re-evaluation' to Legal Notice
According to Yu Hu, on January 13, Kaito's account manager at X sent an email warning that the partnership 'may be re-evaluated.' The team replied promptly asking for clarification. The next day, January 14, Kaito received a formal legal notice from X. They responded with legal documents that same day and again requested a phone call to discuss details. On January 15, the team learned of the 'InfoFi shutdown' alongside everyone else — through a post from X's Nikita.
Critics have questioned why Kaito didn't announce the ban earlier. Yu Hu explained that this was not the first time Kaito had received a legal notice from X. In previous cases, the company negotiated a new enterprise plan and the situation 'ended peacefully.' With that history, when the 're-evaluation' warning and legal letter arrived so close together, the team chose to await further details from X before making a unilateral public statement.
Kaito Studio: Already in the Works, Not a Pivot
Regarding claims that Kaito suddenly pivoted to a new platform, Yu Hu said Kaito Studio had been in development for 'several months'. It is designed as a cross-platform content tool targeting TikTok, YouTube, and others, with applications extending beyond crypto into the broader creator economy. The new product is meant to complement Yaps, not replace it.
Yu Hu noted that Kaito had already worked with pilot users on multiple social platforms — covering both crypto and non-crypto scenarios — and had prepared pitches and demos well ahead of time. That groundwork allowed the team to quickly communicate the new direction after X's announcement.
Yaps Sunset: Official Shutdown in 2026
Yu Hu confirmed that Yaps will be 'sunsetted' gradually, with Kaito Studio taking over as the company's flagship cross-platform product by 2026. The move means Kaito will no longer be tied to a single social platform, shifting toward more decentralized content and traffic sources.
Other Business Lines: Unchanged
Despite Yaps' impending closure, Kaito stressed that other services remain fully operational. Yu Hu said the adjustment 'does not affect' Kaito Launchpad, Kaito Pro, Kaito API, or the upcoming Kaito Markets. The fallout with X is confined to the Yaps product line and hasn't impacted the broader business structure.