Twitter’s New API Rules Shake Up the Crypto Market

Twitter, under the leadership of Product Manager Nikita Bier, has recently overhauled its approach to tackling spam on the platform. By revising its API policies, the social media giant aims to eliminate fake interactions and their ripple effects on altcoins such as Kaito within the InfoFi sector.

How Do the New API Policies Affect Altcoins?

The latest changes to Twitter’s API protocols have resulted in a ban on all third-party applications that incentivize user interaction with rewards, points, or tokens for retweets and shares. This strategy targets crypto platforms known for cluttering timelines with irrelevant content under the banner of “earn rewards.” Consequently, such applications are now denied access to Twitter.

Who are the Principal Voices Behind This Move?

Addressing these significant changes, Nikita Bier stated,

“We are revising our developer API policies. Applications that offer rewards for sharing on Twitter will no longer be allowed (also known as ‘InfoFi’). This has led to excessive AI-generated content and response spam on the platform.”

Bier emphasized that the removal of these applications is expected to enhance user experience as they lose monetary incentives.

He also mentioned offering support to affected developers by guiding their transition to other platforms like Threads and Bluesky. This invitation aims to cushion the impact on developers whose apps have been terminated under the new guidelines.

The ramifications were immediately felt, with Kaito Yapper, a community with 157,000 followers, facing termination. Subsequently, the KAITO token‘s market value suffered a substantial hit, dropping by a significant 17%.

Financial repercussions were widespread across other altcoins in the InfoFi category:

• KAITO Coin stooped to a new low of $0.54.
• COIKE saw a retreat of 10% in its value.
• LOUD recorded an equivalent reduction of 10%.
• LURKY similarly faltered with a 9% decrease.

InfoFi altcoins, collectively valued at $373 million, experienced a notable 10% contraction in market capitalization post-policy enforcement.

This strategic policy shift by Twitter reflects its ongoing commitment to fostering genuine user experiences while combating spam and promoting greater authenticity on its platform.