Crypto Twitter Erupts: InfoFi Projects Accused of Fueling AI Content Spam with Lucrative Rewards

An algorithmic gold rush is polluting crypto discourse. The Crypto Twitter community is in open revolt, calling out Information Finance (InfoFi) platforms for creating perverse incentives that flood social feeds with AI-generated spam.

The Reward Engine Backfiring

At the heart of the controversy are token reward mechanisms designed to incentivize quality content creation and curation. Instead, they're being systematically gamed. Automated bots and low-effort farms deploy legions of AI tools to churn out generic market analysis, shallow project summaries, and repetitive commentary—all optimized not for insight, but for harvesting platform rewards.

This spam tsunami drowns out genuine human discussion, erodes signal-to-noise ratios for traders and degrades the overall informational integrity of the crypto social sphere. It turns community hubs into content mills, where volume trumps value every time.

Community Backlash Hits a Fever Pitch

The backlash isn't subtle. Influencers, developers, and long-time community members are publicly naming projects, tagging founders, and demanding accountability. The core accusation: these platforms are sacrificing ecosystem health for vanity metrics like user engagement and content volume, all while devaluing their own native tokens by distributing them for worthless output.

It's a classic case of misaligned incentives—the kind of short-term thinking that gives decentralized governance a bad name. Some critics are even drawing parallels to the initial coin offering (ICO) era's empty promises, just with a generative AI twist.

A Test for Web3's Information Economy

This clash exposes a fundamental tension in the InfoFi model. Can decentralized systems accurately assess and reward the subjective quality of information, or will they always be vulnerable to Sybil attacks and algorithmic exploitation? The current crisis suggests many projects built the financial engine before solving the quality-control problem.

For the broader market, it's a warning. When a sector starts paying people to generate noise, it's usually a sign the smart money is looking for the exit—or at least a very good pair of earplugs. The solution won't come from another AI detection tool, but from redesigning incentive structures that reward discernment, not just distribution.

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.

infoFi is one of the most widely promoted scams in this cycle.

most projects pushed out through Kaito and other infoFi platforms are nothing but coordinated attention farms.

attention isn’t free.

attention is time and time is money.

if a new project needs your attention so…

— Ubee (@theUbee_) December 8, 2025

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.

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