Elon Musk’s X Bans Access to ‘InfoFi’ Crypto Projects Amid ‘AI Slop’ Backlash – Decrypt

Elon Musk’s X is taking action against projects that seek to financialize users’ attention on the platform using digital assets, Head of Product Nikita Bier declared on Thursday.

“We will no longer allow apps that reward users for posting on X,” he said. “This has led to a tremendous amount of AI slop [and] reply spam on the platform.”

As part of the initiative, Bier said that X had revoked API access for so-called InfoFi projects, arguing that users’ experience on the platform “should start improving soon” as bots become aware that their activity is no longer generating income.

Bier’s statement included a call to people that had their developer accounts terminated, offering assistance with transitioning them to Meta’s Threads or Bluesky, the decentralized alternative to X that gained traction after Musk’s acquisition of Twitter in 2022.

Kaito, a project that’s become synonymous with InfoFi following its debut last February, saw its native token nosedive following the announcement. Changing hands around $0.58, the token’s price dropped over 15% within 30 minutes of Bier’s statement, according to CoinGecko.

Editor’s note: This story is breaking and will be updated with additional detail.