The Rise and Fall of InfoFi: Lessons from a Web3 Experiment
On January 9, 2026, bots flooded X with 7.75 million crypto-related posts in a single day — a 1,224% spike over normal levels. Six days later, X's head of product Nikita Bier pulled the plug on every app responsible, wiping $40 million in market cap from the InfoFi sector in hours. The message was blunt: platforms that reward posting with tokens had turned social media into a spam factory, and the experiment was over.
But it wasn't over. Two months later, the company at the center of that collapse — Kaito — relaunched with an entirely different model, one that swaps volume-for-tokens with curated creator-brand matchmaking. The InfoFi story is no longer about rewarding attention. It's about whether Web3 can build something durable on foundations it doesn't control.