X banned every "post-to-earn" app from using its API.
Kaito's token dropped 20%. Then Cookie crashed. In a blink, the entire InfoFi sector got wiped out.
As founders, you need to re-think about growth, incentives, and trust.
If you want to build a product-led growth engine, join our waitlist. We help founders build solid products using our suit of tools.
Why the Model Was Broken
When Nikita, X's product head, said "tremendous AI slop and reply spam" as the reason for the ban, he was just stating what everyone already knew.
InfoFi tried to compress social capital into a simple equation:
behavior = tokens = value
Unfortunately, that's not the right correlation between communities and trust.
When you pay people for attention metrics, they optimize for attention metrics.
The result? AI slop. More Bots, less real people.
People who actually put efforts joined expecting meaningful airdrops but they got were tiny allocations while insiders dumped their bags.
What Founders Need to Know
Platform dependency is fatal.
Building your entire business on a particular platform means a single point of failure. One policy change and you're done.
Token incentives need to reward value.
If bots can game your system, your incentives are broken.
You need to redesign rewards around meaningful contribution, including product usage, expert input, genuine community building.
Authenticity is your only moat.
When every feed is drowning in AI-generated content, what cuts through?
Someone with Experience, Expertise, Authoritativeness, and Trustworthiness (EEAT).
Why Personal Brands Matter Now
Audiences are moving toward real experts with real names, a track record and reputation on the line.
People trust personalities over brands. A recommendation from someone ‘you know’ carries exponentially more weight than gamified engagement.
Your founder identity is becoming your startup's primary defense a.k.a a distinctive point of view that can't be replicated by AI.
What To Do Right Now
Rebuild your growth engine: Stop chasing viral hacks. Build owned channels where quality matters.
Invest in your founder brand: Share insights only you can provide. Build a narrative worth following.
Fix your incentives: If you're using tokens, tie them to actual product value.
Prepare for investor questions: They'll ask: How do you grow without buying engagement? How do you verify real users and value? Have answers ready.
Partner Note
Our team, including Manav Gupta, founder of Brinc and Venture Network, will be in Hong Kong for Consensus Week.
If you’re attending the conference, join us for VC Connect – HK, an invite-only side event bringing founders and investors together.
📍 During Consensus Week
🎟 Invite-only