Why is InfoFi no longer popular?

Creators and projects are leaving the InfoFi platform.

Written by: Geek

Translated by: Luffy, Foresight News

If we have reached the end of the InfoFi era, or are steadily approaching this point, I wouldn’t be surprised.

Since the rise of InfoFi, many people have made considerable profits from it—some have earned five figures, while others have even made six figures. But now, there are some signals that deserve our close attention.

Changes in Threshold Rules

Strictly speaking, I don’t think this Kaito upgrade is entirely a bad thing. It may effectively prevent a large number of accounts from using AI to generate low-quality content for “farming,” while also improving content quality.

However, after the upgrade, not only were small accounts affected, but many large accounts were not spared either. This has led a large number of users who relied on Kaito to leave, because after the upgrade, they have almost no chance to make money on the platform anymore.

In response, some project teams have chosen to remove the threshold in order to attract small accounts. This precisely shows that, in most cases, the group of small accounts is crucial.

My view is: Kaito seems confused about the direction of this upgrade, and many project teams clearly dislike this “threshold restriction.” However, it is undeniable that Kaito has performed quite well over the past few months.

Token Distribution Plan Falls Short

For content creators (yappers), the current standard 0.5%-1% token allocation is far from enough, as the valuation of these tokens is often very low when they go live.

In the early days, some accounts could earn four or five figures in just 1-2 months of promotional activities; but now, even after participating in activities for 3-6 months, they can only earn three or four figures, which has left many people disheartened.

Even top accounts, despite producing high-quality content, find it difficult to earn a substantial four-figure income.

Why is this bad news for creators who rely on InfoFi? Before the rise of InfoFi, many creators could earn a decent income by promoting content as brand ambassadors or KOLs. Now, the rewards offered by project teams on Kaito simply cannot compare to external collaborations. Given this fact, it’s no surprise that more and more creators are choosing to leave the InfoFi platform.

Dominance of “Capital Launchpad” Becomes Apparent

On July 22, Kaito’s “Capital Launchpad” officially launched, with Espresso as the first project, followed by more projects joining in succession.

For Kaito, this is undoubtedly a good product, but I do have a few concerns:

• None of the projects that have conducted their initial token offering through Kaito have been listed on the public market so far;
• These projects have not announced any launch dates;
• Most projects are overvalued, and their token unlocking plans are unfriendly to investors.

My additional view: Kaito was originally built specifically for InfoFi, and only later decided to add extra platform features (such as Launchpad), which is a great attempt in itself. But recently, more and more projects are choosing to join “Capital Launchpad” instead of participating in the “Creator Leaderboard.” For an InfoFi platform, this trend is clearly not optimistic.

However, this is just an obvious phenomenon I’ve observed, and it seems that few people are questioning it.

Project Teams Prefer to Work Directly with KOLs Rather Than Through the Kaito Platform

This is very clear: project teams are no longer as enthusiastic about participating in InfoFi collaborations.

Recently, Zachxbt released a Google Sheet listing a batch of accounts that received payments from a certain project team. I mention this not because I’m surprised, but because the amounts paid are quite substantial, especially compared to the projects on Kaito’s “Creator Leaderboard.”

I believe this has made many people realize that there are many ways to make money besides InfoFi. And the reality of human nature is to “find every way to make more money,” so I think this poses direct competition to Kaito.