
KAITO is under renewed selling pressure with a wave of token unstaking and a crackdown on InfoFi apps by X .
Author: Sahil Thakur
Published On: Fri, 16 Jan 2026 04:29:59 GMT
16th January 2025 – KAITO is under renewed selling pressure with a wave of token unstaking and a crackdown on InfoFi apps by X . Together, they are creating a perfect storm for the token’s short-term price action.
High Signal Summary For A Quick Glance
A major batch of 1.1 million $KAITO tokens is about to complete its 7-day unbonding period on January 16, 2026. These tokens began unstaking around January 9–10. Some reports suggest insiders may have anticipated this, triggering coordinated exits.
Looking ahead, another 4.6 million tokens are expected to finish unbonding by January 23. This would mark one of the biggest single-day unstaking events on record for KAITO.
That’s not all. On January 20, the project will unlock 8.35 million $KAITO from its team and ecosystem allocations. That represents 2.8% of the released supply. If recipients sell these tokens, it could flood the market and increase downward pressure on price.
Kaito has seen strong participation – over 15,000 users have staked tokens, and the team completed $4M in token buybacks. However, the timing of these unlocks is raising concerns. Technical charts also show overbought signals. Historically, such conditions lead to short-term price drops due to sudden increases in circulating supply.

On January 15, 2026, X implemented a policy banning apps that reward user engagement. These apps, commonly known as InfoFi platforms, use tokens or points to incentivize posting and replies. X blamed them for creating “AI slop” – low-effort spam content that clogs user feeds.
X’s Head of Product, Nikita Bier, announced the ban and revoked API access for affected projects. He encouraged developers to move to other platforms like Threads or Bluesky.
Kaito was hit hard. The platform shut down its Yaps feature and lost its 157,000-member yapper group. Other major InfoFi projects like Cookie DAO, Wallchain, and Galxe also paused or restructured campaigns.
This move wasn’t unexpected. In December 2025, X had already reduced the reach of crypto content. It deprioritized tickers like $BTC and buzzwords to fight spam. As a result, crypto creators have seen their reach drop to as little as 2–10% of earlier levels.
Now, many InfoFi projects are shifting to Discord, Telegram, and on-chain tools. However, losing X means a major drop in visibility.
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Following X’s announcement, InfoFi tokens plummeted. $KAITO dropped 15–20% in 24 hours, falling to $0.56–$0.58. Volume surged by 87% to $121 million, showing panic-driven exits. Other tokens also took big hits:
In total, the InfoFi market cap shrank by about 12%, down to $359–373 million.
InfoFi token and NFT price drops after X ban
The next few days will be crucial. The January 20 unlock and January 23 unstaking could push over 12 million $KAITO into circulation. If demand fails to absorb this, prices could slide further. At the same time, InfoFi builders must now operate without X, one of their largest distribution channels.
Kaito must adapt quickly. Its response will shape how investors view its long-term potential in a post-X InfoFi world.
Real voices. Real reactions.
Dear Kaito yappers It’s time. https://t.co/4cJTrYnbgY

X BAN INFOFI Cookie close platform Kaito Token Drop 18% Yapybaras NFT Kaito Down From 0.4 ETH Wallchain NFT Down From 3 SOL to 1 SOL BASED @nikitabier Bring back CT real talk not reward https://t.co/Ts5QZ4jqQP




@BillyM2k @nikitabier Rip Kaito Yappers they nuked the 157K slop account community https://t.co/Hcxliq1l3M


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