Crypto investors faced a sudden wake-up call as InfoFi-related tokens continued their steep declines, raising questions about the viability of social reward projects. According to CryptoRank, Nikita Bier’s recent announcement to stop supporting apps that reward users for posting on X sparked panic among traders.
Market data show that the loss of InfoFi tokens is not an isolated incident; these digital assets have been having difficulties for months, exhibiting consistent downward trends. The action demonstrates how early zeal frequently does not result in long-term growth.
The InfoFi narrative, once aimed at bringing value to content creators, has now shifted to a cautionary tale. CryptoRank noted, “A narrative that was once designed to bring value to creators turned into mass AI slop, as bots and low-quality content flooded in to extract funds and move on.” This comment highlights the basic issue: speculative investments were drawn to hype-driven initiatives, but market fundamentals were unable to sustain long-term demand. As a result, since listing, tokens including $KAITO, $COOKIE, $LOUD, and $ARBUS have suffered significant losses ranging from 55% to 96%.
Token Performance Shows Volatility and Long-Term Decline
Arbus (ARBUS) provides a clear example of sustained market weakness. After a brief rally in late 2023 and early 2024, ARBUS fell close to 80–90% below its initial listing price by early 2026. Hence, long-term recovery appears unlikely. Kaito (KAITO) followed a different trajectory, surging nearly 100% shortly after launch but failing to maintain momentum. By January 2026, it traded 40–50% below its listing level, reflecting fading investor interest.
In a similar vein, Cookie (COOKIE) saw modest post-listing gains, rising 60–65% before steadily declining. The most difficult was Loud (LOUD), which fell precipitously after launch and came close to losing everything. Furthermore, early rallies did little to stop long-term falls, demonstrating that initial excitement seldom ensures long-term growth. Additionally, the InfoFi token market exhibits a common pattern in the cryptocurrency market: quick speculation, fleeting profits, and ultimately investor caution.
- •InfoFi tokens like $KAITO and $ARBUS saw huge early gains but now trade 40–90% below listing, showing fading hype.
- •Bots and low-quality content flooded platforms, turning creator-focused rewards into speculative losses.
- •Early rallies don’t guarantee long-term growth; investors must prioritize adoption and engagement over hype.
What This Means for Investors
The InfoFi collapse serves as a warning for traders chasing social token hype. While early gains attract attention, long-term success depends on genuine adoption and consistent user engagement. As CryptoRank emphasizes, “The idea failed to find a workable implementation long before yesterday.” Consequently, investors should approach similar projects with skepticism, balancing excitement with caution.