The blockchain investigator ZachXBT is part of a community frustrated by accounts on social media promoting Information Finance (InfoFi) platforms, specifically namedropping Kaito Yaps, Galxe, Layer3, Cookie, Wallchain, and Xeet. InfoFi applications crawled into the crypto cycle as a way to reward users for producing analysis, predictions, market commentary, or social posts. Their systems rely […]The blockchain investigator ZachXBT is part of a community frustrated by accounts on social media promoting Information Finance (InfoFi) platforms, specifically namedropping Kaito Yaps, Galxe, Layer3, Cookie, Wallchain, and Xeet. InfoFi applications crawled into the crypto cycle as a way to reward users for producing analysis, predictions, market commentary, or social posts. Their systems rely […]

Crypto Twitter lashes out at InfoFi projects for rewarding AI content spammers

2025/12/08 22:18

The blockchain investigator ZachXBT is part of a community frustrated by accounts on social media promoting Information Finance (InfoFi) platforms, specifically namedropping Kaito Yaps, Galxe, Layer3, Cookie, Wallchain, and Xeet.

InfoFi applications crawled into the crypto cycle as a way to reward users for producing analysis, predictions, market commentary, or social posts. Their systems rely on AI models, token rewards, and community moderation to determine which contributions hold value. 

Proponents say the model turns information into a tradable asset, but naysayers like ZachXBT believe the surge of projects built on this idea has weakened evaluation rules and has encouraged spam, automated replies, and “attention farming.”

“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,” he said on X in July, responding to an account promoting Kaito Yaps.

ZachXBT launches bounty push for user data

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

“$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,” the 2D investigator announced.

Hours later, ZachXBT posted another update on his channel, writing: “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.”

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 say 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 a part of the Vertex Protocol support team, called InfoFi platforms the “most widely promoted scams” in this crypto cycle. 

“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,” the crypto trader bashed the projects in a thread on X.

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 crypto promotions unwelcome on X

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 from user engagement, community tasks or points-based activity systems. Some opponents propounded that these incentives are exploited by automated bots and coordinated groups who flood feeds to maximize token earnings.

“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?” an NFT enthusiast who has been in the information finance community complained.

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.

Sign up to Bybit and start trading with $30,050 in welcome gifts

Market Opportunity
Sleepless AI Logo
Sleepless AI Price(AI)
$0.03691
$0.03691$0.03691
-1.25%
USD
Sleepless AI (AI) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Will the 10% Rally Build Into a Bigger Run?

Will the 10% Rally Build Into a Bigger Run?

The post Will the 10% Rally Build Into a Bigger Run? appeared on BitcoinEthereumNews.com. MYX Finance jumped 10%, reaching the $3.43 mark. MYX’s daily trading volume
Share
BitcoinEthereumNews2025/12/16 02:37
‘Groundbreaking’: Barry Silbert Reacts to Approval of ETF with XRP Exposure

‘Groundbreaking’: Barry Silbert Reacts to Approval of ETF with XRP Exposure

The post ‘Groundbreaking’: Barry Silbert Reacts to Approval of ETF with XRP Exposure appeared on BitcoinEthereumNews.com. A “combo” ETF  Crypto ETF trailblazer  Digital Currency Group founder Barry Silbert has reacted to the approval of the Grayscale Digital Large Cap Fund  (GDLC), the very first multi-crypto exchange-traded fund (ETF), describing it as “groundbreaking.”  “Grayscale continues to be the first mover, driving new product innovations that bridge tradfi and digital assets,” Silbert said while commenting on the news.  Peter Mintzberg, chief executive officer at Graysacle, claims that the team behind the world’s leading cryptocurrency asset manager is working “expeditiously” in order to bring the product to the market.  A “combo” ETF  The ETF in question offers exposure to Bitcoin (BTC), Ethereum (ETH), as well as several other major altcoins, including the Ripple-linked XRP token, Solana (SOL), and Cardano (ADA). XRP, for instance, has a 5.2% share of the fund, making it the third-largest constituent.  The fund initially debuted as a private placement for accredited investors back in early 2018, and its shares later became available on over-the-counter (OTC) markets.  In early July, the SEC approved the conversion of GDLC into an ETF, but it was then abruptly halted for a “review” shortly after this.  As of Sept. 17, the fund currently has a total of $915.6 million in assets.  Crypto ETF trailblazer  It is worth noting that Grayscale is usually credited with kickstarting the cryptocurrency ETF craze by winning its court case against the SEC.  The SEC ended up approving Bitcoin ETFs in early 2024 and then followed up with Ethereum ETFs.  Grayscale’s flagship GBTC currently boasts more than $20.5 billion in net assets, according to data provided by SoSoValue.  Source: https://u.today/groundbreaking-barry-silbert-reacts-to-approval-of-etf-with-xrp-exposure
Share
BitcoinEthereumNews2025/09/19 03:39
Strategic Surge: BlackRock’s Major Digital Asset Expansion with 7 Key Hires

Strategic Surge: BlackRock’s Major Digital Asset Expansion with 7 Key Hires

BitcoinWorld Strategic Surge: BlackRock’s Major Digital Asset Expansion with 7 Key Hires In a powerful signal to the financial world, asset management titan BlackRock
Share
bitcoinworld2025/12/16 02:25