Tiger Research: InfoFi collapse caused by reliance on centralized platforms

The collapse of the InfoFi ecosystem, including projects like Kaito, was caused by a structural reliance on centralized platforms, according to a report from Asian Web3 research firm Tiger Research. The firm noted that the ecosystem crumbled within just three days of a policy change at X, formerly Twitter. On Jan. 15, X Product Lead Nikita Bier announced that the platform would no longer permit apps that reward users for posting, which triggered the downfall of InfoFi projects. The report stated that the InfoFi sector's collapse offers lessons on the risks of depending on centralized platforms and the limitations of certain incentive designs. However, Tiger Research suggested that the sector is not finished, predicting that the few projects that have found product-market fit will survive through an "InfoFi 2.0." The report outlined several potential paths for these projects, including shutting down, pivoting to a bounty-style grant platform, adopting a sponsored influencer review model, expanding to multiple platforms like YouTube and TikTok, or developing into a management service for key opinion leaders.