Introduction to Kaito
Founded in 2022 by Cambridge graduate Yu Hu, formerly of Citadel, Kaito emerged to address the fragmentation of crypto information. Initially conceived as an AI-powered vertical search engine for Web3, the platform quickly attracted $10.8 million in venture funding, including from Dragonfly, Sequoia China, and Spartan Group.
Core Platform Components
1. Kaito Portal / Pro
It functions as the backbone of the ecosystem. Through real-time aggregation of thousands of Web3 sources—such as governance proposals, podcasts, tweets, research and news—it offers several advanced analytics tools:
- MetaSearch: AI-driven search across forums, transcripts, code and social media.
- Mindshare & Sentiment Analysis: Displays token narratives and sentiment shifts, enabling users to track market moods.
- Smart Alerts & AI Copilot: Configure alerts for market moves and obtain summaries of complex content.
- Catalyst Calendar: Lists events such as unlocks, governance votes, and product launches.
Despite a steep price (~$833/month), it has been widely adopted by hedge funds and professional traders.
2. Yaps – the “Yap-to-Earn” Model
In December 2024, Kaito introduced Yaps, a point-based reward system for crypto content creators. Central features include:
- Smart Follower weighting: Engagement from reputable crypto developers and influencers (“Smart Followers”) is prioritized over basic follower counts.
- Hidden algorithm: The reward algorithm is undisclosed to prevent manipulation and reward originality .
- Yapper Leaderboard: A public ranking based on Yaps accumulation.
- Airdrop integration: Projects like Berachain, Story Protocol—and later Aptos—used Yaps to allocate airdrops.
- Aptos partnership: Enabled an Aptos-focused leaderboard to incentivize ecosystem promotion on X.
3. Kaito Connect
Designed to foster community engagement and project discovery:
- Voting on pre-TGE projects via on-chain mechanisms using Yaps, staked sKAITO tokens, and Genesis NFTs.
- One-vote-per-yapper system, with sybil-resistance and real-time leaderboard updates.
- Kaito Launchpad: Empowers tokenless projects to build mindshare via leaderboard-based exposure before token generation.
4. Subnet 5 on Bittensor
Kaito leverages Subnet 5 within the Bittensor network to train NLP models focused on text embedding. These models power Kaito’s:
- Plagiarism detection
- Content ranking
- Sentiment analysis
Consequently, Kaito’s embeddings even outperform those of OpenAI, and they are accessible via API.
Ecosystem & Associated Projects
Yapper Launchpad Projects
In early 2025, Kaito’s Launchpad featured five notable pre-TGE projects—selected by community vote—to gain visibility via Yapper engagement:
- Wayfinder – AI-based trading agent
- Espresso – Shared sorting protocol
- Enso – Blockchain rapid-development tool
- SOMO – TikTok-native “Monster IP” chain
- Kinto – Modular trading exchange
Enterprise & Community Use Cases
Notable success stories include:
- Eclipse: Increased mindshare by 30% over three months using Kaito’s AI analytics.
- Eigenlayer: By applying sentiment tracking during its airdrop, it reduced negative sentiment by 25%.
- Lunar Strategy: Coordinated campaigns using Kaito yielded a 40% brand-awareness boost.
- MAX Exchange: Used Kaito to enter the Taiwan market efficiently.
Moreover, Kaito has formed partnerships with Chainlink, Polygon, and Solana, reflecting wider ecosystem integration.
Token and Launch Timeline
- $KAITO Token Details:
- Total supply of 1 billion
- Initial circulating supply ~24% (~241 million tokens)
- Distribution: 32.2% ecosystem, 10% initial community, 7.5% creator incentives, others for liquidity, contributors, etc.
- Timeline:
- Airdrop claim window: February 6–10, 2025 via Binance Holder staking
- Official token generation and exchange listings (Binance, Coinbase, OKX, Kraken, Gate.io) took place on February 20, 2025.
- Following these listings, the token’s value surged past $2, with marked spikes (e.g., +41.5% on February 27 to $2.52 market cap ~$600 million).
Governance & Security
- Governance is decentralized: votes are cast by staked token holders, Yappers, or Genesis NFT owners, with results stored on-chain.
- In March 2025, a security incident occurred when the founder’s X (Twitter) accounts were hacked to induce a pump‑and‑dump; however, team control was swiftly restored, and core assets remained secure.
Summary Table
Feature | What It Does |
---|---|
Kaito Portal | AI search, sentiment tracking, alerts, audio summaries |
Yaps | Earn points for quality crypto content on X |
Yapper Launchpad | Community‑voted visibility for pre‑token projects |
Kaito API | Integrates insights into external tools (exchanges, apps) |
KAITO Token | Native asset for staking, rewards, and usage in the platform |
Conclusion
In conclusion, Kaito has successfully blended AI-driven Web3 search, incentive-aligned community engagement, decentralized governance, and tokenized attention. Thus, it has spawned a dynamic ecosystem ranging from pre-TGE startups to established blockchain ventures. With its tight integration of sentiment intelligence, attention monetization via Yaps, and community voting, Kaito stands out as a pioneering InfoFi (“information finance”) platform—transforming how crypto participants consume, reward, and influence information.
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