after X (formerly Twitter) took action to curb so-called “AI slop” on the platform, AI-driven crypto platforms such as Kaito.ai and Cookie DAO were banned from paying users to post content on X.

X product lead Nikita Bier said on Thursday: “We will no longer allow apps that operate by rewarding users for posting on X (the so-called ‘infofi’). This practice has caused a large amount of AI slop and reply spam on the platform.”

He added: “We have revoked API access for these apps, so your X experience will soon start to improve (once these bots realize they are no longer getting paid).”

Within an hour of Bier’s post, Kaito announced it would gradually shut down its “Yaps” product that rewards users for posting on X, triggering a sharp drop in its KAITO token.

Meanwhile, Cookie DAO also announced it would shut down its similar “Snaps” product, which also led to a decline in its Cookie DAO (COOKIE) token.

Yaps and Snaps reward users for posting and interacting with crypto-related content on X through points, tokens, and airdrops, a mechanism that often encourages users to generate replies using artificial intelligence.