Crypto Twitter Condemns InfoFi for Rewarding AI Spam Posts

The Rise and Criticism of InfoFi Platforms

Blockchain investigator ZachXBT has become a prominent voice in the crypto community, criticizing certain social media accounts that promote Information Finance (InfoFi) platforms. These platforms include Kaito Yaps, Galxe, Layer3, Cookie, Wallchain, and Xeet. ZachXBT is part of a growing group of users who are frustrated with the way these platforms operate.

InfoFi applications have entered the cryptocurrency space by rewarding users for creating analysis, predictions, market commentary, or social posts. Their systems typically rely on AI models, token rewards, and community moderation to assess the value of contributions. Proponents argue that this model turns information into a tradable asset, but critics like ZachXBT believe it has weakened evaluation standards and encouraged spam, automated replies, and "attention farming."

ZachXBT recently expressed his frustration on X, responding to an account promoting Kaito Yaps. He stated, “All the meta has done is boost AI slop and low-quality content while pretending it brought sticky users to the project. It was profitable early on before it became saturated.”

A Bounty for User Data

In a post to his Telegram channel, ZachXBT accused the targeted InfoFi platforms of incentivizing AI-driven posting behavior that fills feeds with low-value submissions. He added that even donation threads for open-source developers were being flooded with “AI garbage content.”

To address this issue, ZachXBT launched a bounty push for user data. He announced on his Telegram channel: “$5K bounty to the first person who can successfully scrape all Kaito Yaps, Wallchain, Galxe, Layer 3, Cookie, Xeet users. Please capture any data available (username, user id, onchain address, score/points, etc). Send me a DM on X once completed.”

Hours later, he updated his channel, stating, “To make it a bit easier I’ll be rewarding bounties for data sets from each of the six InfoFi platforms I stated. Xeet (144K X accounts) has already been completed.”

Growing Opposition to InfoFi Influencers

Opposition to InfoFi influencers has grown throughout the year, with more Crypto Twitter members complaining about engagement-driven scoring systems that reward volume over meaning. Some community members argue that the model has created a cycle where projects must constantly manufacture hype to keep participants active, which has drained the authenticity out of the conversations it was meant to enhance.

Ubee, a user on X who was part of the Vertex Protocol support team, called InfoFi platforms the “most widely promoted scams” in this crypto cycle. In a thread on X, Ubee criticized the projects, saying, “Most projects pushed out through Kaito and other infoFi platforms are nothing but coordinated attention farms if a new project needs your attention so urgently that alone should be a red flag. Funny how after TGE community evaporates and we watch the project hard reset to zero every single time.”

According to Ubee, the crypto audience is beginning to recognize how much credibility these systems have lost, alongside how feeds are now clogged with “technical jargon, scripted prompts and repetitive commentary” with no originality.

AI-Driven Engagement and Its Impact

One of the projects named by ZachXBT, Kaito Yaps, launched in 2022 as an AI-powered research platform for digital assets. Its tools aggregate market intelligence, on-chain data, and community discussions, and many traders use it to follow emerging sector trends.

The other platforms share similar reward models based on user engagement, community tasks, or points-based activity systems. Some opponents argue that these incentives are exploited by automated bots and coordinated groups who flood feeds to maximize token earnings.

An NFT enthusiast who has been in the information finance community complained, “What to say about InfoFi … at first it looked good, but as time passed … I just feel used…Do we really want to continue to be used to promoting some projects just so they take the $ and we get peanuts for our time?”

Some users also claim many InfoFi platforms have begun to extract value from their own communities, adding that contributors were being “farmed” alongside the data they produced.

“Instead of experts, we have an army of mercenaries. Instead of discussions, we have ‘Reply Guys’ on steroids. The algorithms behind platforms like Kaito or Cookie reward activity and engagement. The moment the metric becomes the goal, it ceases to be a good metric. The user base has stopped thinking, and they have started executing tasks,” commentator Azel reiterated.

Sharpen Your Strategy with Mentorship

For those looking to improve their trading strategies, mentorship and daily ideas can provide valuable insights. Consider exploring a trading program that offers 30 days of free access to help you refine your approach.