InfoFi Encounters a Chill: Rule Upgrades, Shrinking Profits, and Platform Transformation Dilemma

Original Author: Geek

Original Compilation: Luffy, Foresight News

If we have reached the end of the InfoFi era, or are gradually approaching this point, I would not be surprised.

Since the rise of InfoFi, many people have made considerable profits, with some accumulating five-figure sums and others even earning six figures. However, today, some signals warrant our high alert.

Changes in Threshold Rules

Strictly speaking, I do not think Kaito's recent upgrade is entirely a bad thing; it may effectively curb the behavior of numerous accounts generating low-quality content with AI to "inflate numbers," while also improving content quality.

However, after the upgrade, not only were small accounts impacted, but many large accounts were also not spared. This led to a significant number of users who relied on Kaito choosing to leave, as they had almost no chance to earn money through the platform after the upgrade.

In response, some project parties chose to eliminate thresholds to attract small accounts. This precisely indicates that, in most cases, the small account group is crucial.

My view is that Kaito seems confused about the direction of this upgrade, and many project parties clearly dislike this "threshold restriction." However, it cannot be denied that Kaito's performance has been quite outstanding over the past few months.

Token Distribution Plan Underwhelming

For content creators (yappers), the current standard token distribution ratio of 0.5%-1% is far from sufficient, as these tokens often have low valuations when they go live.

In the early days, some accounts could earn four to five figures from promotional activities within 1-2 months; now, even participating in activities for 3-6 months can only yield three to four figures, which has left many feeling disheartened.

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

Why is this bad news for creators relying on InfoFi? Before the rise of InfoFi, many creators earned decent income as brand ambassadors or KOLs promoting content. Now, the compensation offered by project parties on Kaito simply cannot compare with external collaborations. Given this fact, it is not surprising that more and more creators are choosing to leave the InfoFi platform.

Dominance of "Capital Launchpad" Highlighted

On July 22, Kaito's "Capital Launchpad" officially launched, with the first project being Espresso, followed by more projects joining in.

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

• No project from Kaito's initial token issuance has gone live on the public market yet;
• These projects have not announced their launch dates;
• Most projects are overvalued, and the token unlocking plans are unfriendly to investors.

My additional point: Kaito was initially built specifically for InfoFi, and later decided to add extra platform features (like Launchpad), which is a great attempt. However, recently, more and more projects are choosing to join the "Capital Launchpad" rather than participate in the "Creator Leaderboard." For an InfoFi platform, this trend is clearly not optimistic.

However, this is just an obvious phenomenon I have observed, and it seems not many people have questioned it.

Project Parties Prefer Direct Cooperation with KOLs Rather Than Through Kaito Platform

This is quite evident: project parties are no longer as enthusiastic about participating in InfoFi collaborations.

Recently, Zachxbt released a Google Sheet listing accounts that received compensation from a certain project party. I mention this not out of surprise, but because the compensation amounts are quite substantial, especially compared to the projects on Kaito's "Creator Leaderboard."

I believe this has made many realize that there are many ways to make money besides InfoFi. The reality of human nature is "to find ways to earn more money," so I think this poses direct competition to Kaito.