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The InfoFi farming narrative collapsed overnight. After recent API disruptions, the situation spiraled quickly—Kaito NFTs plummeted 60% in a matter of hours, wiping out positions held by yield farmers who'd been chasing engagement rewards.
The domino effect was brutal. When the infrastructure issues hit, liquidity dried up instantly. But that's only half the story. Token unlock schedules coming down the pipeline added pressure to an already fragile market sentiment. Farmers caught in the middle found their strategies crumbling.
What started as aggressive engagement farming turned into a cautionary tale about concentration risk and infrastructure dependency. The speed of the collapse raised serious questions about sustainable yield mechanisms versus hype-driven farming cycles that eventually correct. For anyone still holding exposure, the next few weeks will be critical as unlock events unfold.