How Kaito’s New Crypto Update Attempts to Fix a Broken System (Spoiler: Will It Work?)

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Kaito AI has just dropped a fresh update to its crypto mindshare algorithm. Yes, you heard that right, after weeks of relentless grumbling from users about the dismal quality of content flooding its InfoFi dashboards, they’ve decided it’s time for a little tweak. But will this fix the mess? Stay tuned!

For what feels like an eternity (okay, maybe just months), users have been scratching their heads, wondering whether Kaito’s mindshare scores actually mean anything at all or if they’re just a glorified popularity contest. Critics have been vocal, accusing influencers and projects of gaming the system, inflating visibility, and pushing hype while contributing absolutely zero value. Fancy that!

Influencers and Projects Exploiting Kaito Loopholes

The new changes aim to curb the oh-so-popular spammy engagement farming and instead reward those “insightful, long-term contributions” across Crypto Twitter. You know, the kind of contributions that actually make you think, instead of making you want to pull your hair out.

Crypto and DeFi researchers have thrown some shade at Kaito and other InfoFi platforms, claiming they’re doing more harm than good by encouraging incentives that are, well, not exactly aligned with the real goals of the ecosystem.

One of these brave souls is Louround, co-founder at Redacted Research, who took to social media to point out how current leaderboards are basically rewarding content that gets views and comments, no matter how shallow or devoid of substance it may be. According to Louround, many of these so-called top influencers are clueless about the projects they’re hyping up. Great, huh?

“We’ve seen through the Loud experimentation that mindshare does not equal protocol interest, nor value creation,” Louround wrote. Shocking, I know.

It’s not just talk either. Arkham has now rolled out a feature to track influencer portfolios, proving once and for all if they’re genuinely backing tokens or just participating in some paid shenanigans.

ANNOUNCING THE KEY OPINION LEADER (KOL) LABEL

Influencers with more than 100K+ followers on Twitter/X are now tagged on Arkham with a new label: Key Opinion Leader.

Track the wallets of biggest KOLs with the link below:

— Arkham (@arkham) March 8, 2025

In case you were wondering, Louround also referred to the Loud project’s mindshare surge, which went from a hearty 60% to an embarrassing $1.4 million FDV two weeks later. So much for mindshare, right?

The critique doesn’t stop there. Some argue that centralized exchanges (CEXs), venture capitalists (VCs), and yes, even Kaito, have all become participants in a self-reinforcing feedback loop where everyone profits from the broken system. Fancy, isn’t it?

“Projects are leveraging views, engagement, and ‘traction’ (without filtering the quality) to then justify to VCs and listing platforms,” Louround added.

And of course, the complaints didn’t stop with Louround. Other voices chimed in, saying that platforms like Caldera are the perfect example of everything that’s wrong with InfoFi’s current approach. Who knew the crypto world had so many philosophers?

Zero Knowledge, another exec at Redacted Research and all-around Hyperliquid maxi, pointed out how “low-quality engagement farmers” have taken over the leaderboards, drowning out genuine contributors. The horror!

“A guy who drops 900+ replies in a day is not an advocate for your tech or brand. It’s an extractor that wants to dump tokens on day one,” the user said. Not wrong, honestly.

Although experts admit the potential of InfoFi and the mindshare concept, they also say the current system doesn’t exactly foster meaningful community engagement or, you know, education. Imagine that!

And so, the cries for a return to Crypto Twitter’s roots grow louder. You know, back when it was all about learning, sharing knowledge, and not just chasing after superficial metrics.

Community Demands Force Kaito AI to Act

1) Posts that only mention rewards or ranking, without providing any insight or commentary on the project will no longer earn mindshare

2) Reduced default max weekly mindshare…

— Kaito AI (@KaitoAI) June 17, 2025

In spite of the criticism, some users are giving Kaito some credit for trying. Jeff, a Web 3 content creator, pointed out how the new shift is changing crypto trading strategies.

Apparently, valuable insights aren’t hidden in charts anymore. No, now they’re lurking in social media conversations. Isn’t the future bright?

“The new alpha isn’t just hidden in charts, it’s hidden in conversations. The old meta was DYOR. The new meta? Decode the feed,” Jeff wrote. Very insightful, Jeff. Bravo!

However, with a reported $1.38 billion FDV and increasing market influence, the pressure is mounting on Kaito to do more than just tinker with surface-level metrics.

As users continue to call for AI-driven content filtering and tiered dashboards that reward actual insight, Kaito’s move shows they might just be willing to listen. Who knows, this might be the start of something big?

“Kaito finally factoring in quality contents. Now the timeline can appear more solid,” one user remarked. Solid? Let’s hope so.

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2025-06-17 15:42