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Jan 15, 20261 month ago

🚨 InfoFi is Dead – Now What? Nikita’s War on Crypto “Spam” Shakes X

CP
Chill Pill 🔮 (Bald)@ripchillpill

AI Summary

This article provides a sharp, insider analysis of a seismic shift on the platform X (formerly Twitter), moving beyond the surface-level drama to explore the real business motives, unintended consequences, and class dynamics at play. It is essential reading for creators, crypto marketers, and anyone interested in the power struggles of social media economics. The author argues that X's official rationale for banning "InfoFi" apps—that they cause spam and AI-generated slop—is a superficial explanation. The real reasons are twofold: 1) to reassert control over the platform's advertising revenue, which was being diverted to third-party payment networks, and 2) to address a symptom of X's own flawed incentive design that rewards low-quality engagement. The article frames this not as the end of rewarding online influence, but as a forced evolution. X's action was a direct attack on a competing revenue model. InfoFi platforms allowed brands to pay creators directly for campaigns, bypassing X's own ad pipes. The ban is framed as X telling big spenders, "you want distribution? buy it from us, not from third parties." The "spam" problem is largely homegrown. The article contends that platforms like YouTube and TikTok are flooded with AI content without InfoFi, and that X's own creator monetization program, which rewards impressions, inherently incentivizes ragebait and reply spam. The consequences will reshape the ecosystem. Creators who relied on easy payouts will leave, while serious ones must pivot to direct deals and building authentic audiences. InfoFi platforms must pivot to agency models or die, illustrating the peril of building on "rented land." A profound class and access dynamic underpins the conflict. The author posits that InfoFi was "the most egalitarian thing" on Crypto Twitter, allowing global creators to earn, and that the backlash was partly about who is deemed a "farmer" versus a legitimate "thought leader" deserving of payment. The core idea of InfoFi will evolve, not die. The piece concludes that rewarding people for spreading information will persist, but will migrate to other chains, platforms, and formats with better filters, moving away from the low-friction, API-driven farm model.

nikita vs infofi: what really just happened

tldr: x just nuked “infofi” from orbit. @nikitabier (head of product at x) banned apps that reward people for posting here. APIs cut. tokens dumped. founders coping. everyone else confused.

we jumped on a space right after it dropped. here’s the breakdown:

what nikita actually did

nikita’s post was simple:

x will no longer allow apps that pay users to post (aka “infofi”).

too much ai slop & reply spam.

api access revoked. your feed should improve soon.

overnight, this kills the core of most infofi platforms (in theory):

no api = no tracking posts

no tracking = no automatic rewards

no automatic rewards = no scaled campaigns

tokens reacted instantly:

kaito down

wallchain NFTs down

other “pay-for-post” plays down

kaito announced it’s sunsetting yaps. cookie said they’re sunsetting snaps. everyone rushing to say “we’re actually a studio / infra / marketing agency now”

head of product at X just literally suggesting competitors to everyone. bold.

the official story: “infofi = spam”

x’s line is clear:

infofi → rewards for posting → bots & low-effort replies → bad user experience

they point at:

ai slop

one-word reply spam

copy-paste behavior

fake engagement behaviors

from x’s view, infofi poured gas on that fire.

so the story is:

kill infofi → no more incentives → spam disappears → everyone wins.

nice theory. but reality is messier

the real problem wasn’t just infofi

i said it on the space and i’ll say it here:

there is no infofi on youtube.

no infofi on tiktok.

no infofi on instagram.

they’re all drowning in ai slop anyway.

so no, infofi didn’t create low-effort content. it just made it more visible in one corner of the internet that already rewards engagement over quality.

and on x specifically, a huge chunk of the spam came from x’s own monetization:

ad rev share based on impressions

creators chasing views at any cost

ragebait, reply spam, outrage farms

that’s not an infofi artifact. that’s x’s incentive design.

also: most infofi platforms were heading towards a different direction by cutting out replies and slashing down on engagement groups and spam and the situation looked much better than 8 months ago.

so when we say:

“this will fix spam”

i really doubt it. maybe we see a small improvement for a bit. but if x keeps rewarding dumb engagement, something else will replace the infofi meta and the problem they think they're solving won't go away

why x really cares: ad money and control (maybe?)

here’s the part nobody wants to say out loud.

infofi was starting to compete with x’s ad business.

projects had two options:

pay x directly (ads, promotions)

pay creators through infofi platforms

every dollar that went to “yappers” and campaign platforms was a dollar not going through x’s pipes.

and because infofi scaled, it became visible. brands could:

set a budget

launch a campaign

reach thousands of accounts

bypass traditional ads

i said this live:

this isn’t just about “bots”. this is x telling big spenders:

“you want distribution? buy it from us, not from third parties.”

infofi didn’t just create noise. it threatened the ad monopolies. when something is both noisy and competing for your revenue, it gets killed fast.

what this means for creators

if you were making money through infofi campaigns, this hurts. no sugarcoating it.

for a lot of small accounts, it was the first time they could:

earn from an early stage

get noticed

get paid in a semi-structured way

that chapter is closed. now what?

some good news:

brands still need distribution

they still don’t want to pay for fake giveaways

they still prefer multiple smaller, real creators who actually show up

one take from the space i fully agree with:

this could push more projects to work with actual creators instead of faceless farmer networks.

there’s now more room for:

direct deals

smaller “pods” of creators

long-term partnerships, not one-off post farms

and yes, it means more work:

building your own audience

writing better

showing up daily

diversifying monetization (newsletters, subs, brand deals, other platforms)

no more easy-mode “press start to earn”. but if you’re playing the long game, that doesn't matter. the people who were only here for quick payouts will leave. the ones who stay will have more room.

what this means for infofi platforms

for founders, this must be brutal.

your main feature just got deleted by someone else’s policy.

your choices now:

pivot into tools: analytics, dashboards, studio products

move to other platforms (threads, bluesky, whatever)

go more manual: less “api farm”, more “agency + human curation”

or die quietly

lesson here is old but true:

"if your core product depends entirely on someone else’s api, you’re a tenant, not an owner" @banditxbt said something like this on the space today

infofi v1 was built on rented land. the landlord just changed the lock.

what this means for projects and marketers

your playbook has to change too.

no more:

buying 300 copy-paste tweets

pretending that equals “community”

using mindless farming as proof of demand

new reality:

find 10–50 creators who actually care

pay them fairly

let them use their own voice

build campaigns with real feedback loops, not just “number go up”

also: diversify.

ct is home base, but you can’t have:

single-platform dependency

single-meta dependency

single-tool dependency

this week was a reminder that any one lever can disappear overnight.

so… is this the end of infofi?

no. it’s the end of this version of it.

x struck down one specific form:

pay-for-post, api-driven, mass-farmed, low-friction campaigns.

the idea behind infofi – rewarding people for spreading information – isn’t going away. it will:

move chains

move platforms

move formats

come back with better filters and clearer rules

and that’s the part i don’t want people to forget:

infofi was the most egalitarian thing to ever happen on ct.

yeah, it surfaced some loud farmers.

but it also let real creators in nigeria, vietnam, india, bangladesh, and everywhere else feed their families for the first time with their voice.

this was never just about slop, or bots, or even the money.

it was about class.

who “deserves” to get paid for their influence.

who “deserves” to sit at the table.

who gets called “farmer” vs “creator” vs “thought leader”.

they didn’t mind incentives.

they minded you being allowed into the game.

my plan for 2026 remains the same tho:

write better

stay honest

protect creators when i can

keep talking about this stuff even when it’s uncomfortable

if you’re reading this, you’re probably one of the few people who stayed through all of it. you’re early to whatever comes next.

By
CPChill Pill 🔮 (Bald)