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X's tightened API regulations have forced several DeFi and crypto projects to pause operations. Kaito (Yaps) and Cookie DAO (Snaps) lost API access, triggering sharp selloffs—$KAITO plunged 14.8% while InfoFi dropped 12% in just 24 hours. The ripple effects didn't stop there. Projects like DefiLlama went defensive, converting community Discord channels to read-only mode as a precaution against the chaos. This move highlights how platform policy shifts can cascade through the Web3 ecosystem faster than expected. When infrastructure access gets cut off, even well-established protocols scramble to adapt.