The image above may have caused some crypto investors to panic. InfoFi tokens like KAITO and COOKIE plummeted — not because the projects were dead, but because a bitter reality was revealed: incentives are not utility.
What actually happened?
When X (formerly Twitter) reduced or stopped the rewards program for financial information-based content (InfoFi), the demand for those tokens immediately plummeted. It turned out that most of the demand had only been driven by the promise of rewards, not by sustainable value or real utility.
Without external incentives, even token holders who are only seeking quick profits will leave. Liquidity dries up, prices plummet.
However, the problem is not just with X.
This is a dependency problem on a single platform.
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Can InfoFi Survive Without X Rewards?
Yes. But with the condition: InfoFi projects must shift from mere engagement farming (chasing mere interaction) to a self-sustaining and valuable ecosystem.
Some things that can be foundational:
· Independent monetization → subscriptions, B2B services, paid API access.
· Independent distribution within the platform → not relying on 'rented' attention from major social media.
· Data, signals, and analytical tools that are truly needed → so that people are willing to pay.
· Network effects that grow organically → without relying on external incentives.
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What Does This Mean for Investors and Developers?
This event is a natural filtering momentum.
Many InfoFi tokens may not survive.
But some that can adapt—shift from mere 'gimmicks' to real providers of information and data—will emerge stronger.
Short-term prices are not a long-term thesis.
What we are witnessing now is a 'cleaning' process: separating projects that are only chasing hype from those that are genuinely building value.
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Stay critical, keep learning. A healthy market is born from projects that have value, not just promises.
