Kaito AI announced a formal data agreement with X, the social platform formerly known as Twitter, to support use cases tied to turning social media chatter into structured intelligence for crypto traders. In January 2026, X imposed API access restrictions that effectively kneecapped Kaito’s ability to pull real-time social data, causing the KAITO token to drop 20% on the news. The restrictions forced Kaito to pivot away from its “Yaps” rewards program and reorient around a new product called Kaito Studio. Founded in Seattle in 2022 by Yu Hu, Kaito AI has raised over $10.8 million from investors including Dragonfly Capital, Sequoia Capital China, and Jane Street. The KAITO token launched on February 20, 2025, and has grown to a market capitalization of approximately $250 million as of late July 2026. In February 2026, Kaito partnered with Polymarket to launch “attention markets,” built around quantifying social trends. For KAITO token holders, the 20% drawdown represented the market pricing in platform risk, and a formal data agreement should reprice that risk lower.