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Major platform shift: X cracks down on apps that incentivize user-generated posts, dealing a blow to the emerging "InfoFi" segment. The fallout was swift—several crypto projects built on this model saw their tokens tank not long after.
X's head of product Nikita Beir made the reasoning clear: the company prioritized platform integrity over the substantial API revenue these apps were generating. It's a telling moment in how mainstream platforms are setting boundaries around crypto-adjacent business models, even when there's money on the table.
For the broader crypto ecosystem, this signals a growing intolerance for mechanisms that feel like pay-to-participate schemes. Whether this pushes InfoFi projects toward legitimate utility or off the stage entirely remains to be seen.