New decisions regarding InfoFi projects on the X platform have had a strong impact on the crypto market.
Nikita Bier, Head of Product at X, announced that InfoFi projects are now prohibited from rewarding users for X posts. Following this decision, Snaps, a Cookie ecosystem known for its reward-based sharing model, decided to cease operations.
X's New Policy and API Access Restrictions
Cookie DAO confirmed in a statement that discussions have recently been held between the X team and some “reward farming” platforms regarding a new policy. As a result of these discussions, it has become clear that X will ban API access for all projects that encourage users to share resources. It was stated that such platforms cannot operate without an official data interface (API).
The new policy targets the increasing number of automated posts, AI-powered shares, and reply bots on X. A significant portion of these bots are reportedly used to boost rankings and earn tokens on third-party reward platforms. X management aims to reduce spam content and improve user experience with this move.
Impact on COOKIE Token and Crypto Communities
Following the decision, COOKIE, one of the prominent tokens in the InfoFi ecosystem, experienced a sharp decline. The price of COOKIE fell by approximately 17% in the last 24 hours, dropping to levels around $0.039.
On the other hand, on-chain researcher ZachXBT announced that the Kaito Yapper community on X, with 157,000 members, has also been banned. Many crypto users argue that the loss of “authenticity” and “value” of X within the crypto community is due to the intense influx of bots and artificial content associated with InfoFi projects.