The backer behind Kaito is once again taking action. Seven days ago, a wallet associated with Kaito transferred 5 million KAITO tokens to the hot wallet of a major exchange.

There seems to be a larger background behind this move. According to industry insiders, as early as December 3rd, X's official account issued a clear directive to major incentive ranking platforms—stop using the X API for various reward and ranking activities. The notice was quite firm, leaving no room for negotiation.

After deducting the initial communication and negotiation period, by early January, most platforms had already received follow-up notices. Interestingly, during this time, the Kaito project team seemed to have already anticipated the policy shift and began making large transfers. This chain reaction caused the market to start re-evaluating how far projects that rely on platform incentives can really go.