Elon Musk's X Blocks ‘InfoFi’ Cryptocurrency Projects Following ‘AI Slop’ Controversy

X Implements Crackdown on Attention-Based Crypto Rewards

Elon Musk’s social platform X has begun targeting initiatives that monetize user engagement through digital currencies, according to Head of Product Nikita Bier’s announcement on Thursday.

Bier revealed, “We will no longer allow apps that reward users for posting on X.” He explained that such practices have resulted in a surge of low-quality AI-generated content and excessive spam replies across the site.

As part of this new policy, X has rescinded API access for so-called InfoFi projects. Bier expressed optimism that users would soon notice an improved experience, as automated accounts realize they can no longer profit from their activity.

Kaito, a project closely associated with InfoFi since its launch in February, experienced a sharp decline in its native token’s value following the news. The token, which was trading at approximately $0.58, plummeted by more than 15% within half an hour of Bier’s statement, according to CoinGecko.