KAITO lost more than 20% of its value in a single day after X (formerly Twitter) revoked API access for apps that reward users for posting. This decision directly affected KAITO’s “Yaps” program, which allowed users to earn tokens by engaging with crypto content on X.
Around 70% of KAITO’s token demand came from this model. Following the shutdown, over 150,000 Yaps-linked accounts were banned, and the token’s price fell from $0.70 to around $0.54.
In response to the ban, the team announced the end of Yaps and introduced “Kaito Studio” – a creator-focused platform meant to work across X, TikTok, and YouTube. It will offer curated campaigns for brands and influencers. However, there is still no confirmation on how the KAITO token will function within this new structure. This lack of clarity has raised questions about future demand for the token.
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On-Chain Activity Raises Concerns
Blockchain data revealed that 5 million KAITO tokens – worth approximately $2.7 million – were transferred to Binance a week before the API ban was announced. The transaction came from a wallet linked to the Kaito team. While not officially confirmed as insider trading, the timing has drawn scrutiny. In addition, nearly 4.6 million tokens are set to be unstaked, potentially increasing selling pressure.
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Outlook Depends on New Utility
Although KAITO remains up 7% over the past month, it is still down more than 50% from its post-airdrop highs. With the token now near $0.54, the next major support is the all-time low of $0.47. A breakdown below that could lead to further declines, with limited support below.
The project is now in transition, with its future tied to whether Kaito Studio can establish a viable role for the token – it’s not live yet, and the community is split on the future of the token. Without a clear utility path soon, market confidence may remain limited.
