KAITO Faces Price Pressure from Unstaking and InfoFi Ban

Large Unstaking Events Add to Supply Concerns

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.

X’s Ban on InfoFi Apps Escalates the Selloff

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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Price Impact Hits the Sector

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:

• $COOKIE fell nearly 20%.
• Wallchain Quack Heads NFTs dropped over 50%.
• Yapybaras NFTs sank by 40% in minutes.
• Smaller InfoFi tokens like $LOUD and $LURKY saw 9–10% losses.

In total, the InfoFi market cap shrank by about 12%, down to $359–373 million.

What Comes Next?

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.