InfoFi is a recent term given to projects that reward users for publishing content on social media. Recently, several platforms have been paying more attention to original content – created without the use of AI – and are therefore undergoing a process of changing their guidelines. Could these changes be the end of InfoFi? What are the projects doing? What have been the impacts on tokens?
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New Era of the Internet
On the internet, and especially on social media, people's attention has become the most important factor. Previously, some platforms focused on metrics like followers and likes, but today the most important metric is the time people spend on the platform and their interaction. You may notice that this change has been happening for some years now, with some profiles losing relevance on social networks because they haven't been able to adapt to the changes.
However, with the arrival of AI tools and the increasing generation of "automatic" content, the internet is becoming a territory lacking new and innovative information. The reason lies in the programming of chatbot AIs – the most well-known – which use past information to predict the next word to be said in the presented context.
This has led to a large part of social media content being generated completely or partially using AI, which has partly motivated recent changes in the platforms. The most recent was a change in X's policy that prohibited InfoFi applications from accessing the API, justifying it precisely by the use of AI-generated content and spam. It's worth remembering that this isn't specific to this issue, as other platforms are also changing their recommendation algorithms regarding AI-generated content, giving preference to more "original" content.
Is this the end of InfoFi?
And what is the relationship between these changes and a possible end of InfoFi? For companies to be making these decisions, they certainly have some reason. I believe it may be related to engagement metrics, that is, "human" users are not interested in this type of content, causing the platform to lose users or attention span, which, as mentioned, is the most important thing nowadays. Or, it could be a request made by companies that purchase advertising on the sites, not wanting to link the ads since the platform is experiencing a lack of interaction.
This decision ended up affecting several InfoFi projects that used the X API to reward users who published Crypto content. In general, the sector ended up losing more than 10% in a short time. One of the projects most affected was Kaito, whose KAITO token fell by 30% shortly after these changes were announced. Cookie Dao fell by more than 15%.
In this scenario, some projects chose to shut down their reward system and focus on other areas, while others are seeking integrations with other networks. The fact is that if nothing were done, this negative environment would end up driving more people away from the networks, which would eventually hinder the projects themselves as well.
