Kaito, an AI-driven data platform, launched its KAITO token, valuing the project at $1 billion.
The token debut follows the Yaps farming campaign, which began in December and allows users to earn rewards through social engagement. While some users appreciated the airdrop’s zero-cost farming model, others were frustrated with the allocation process.
Tokenomics and Market Impact
The KAITO token launched with 24% of its total supply in circulation, trading at a $400 million market cap and reaching a fully diluted valuation (FDV) of $1.7 billion. The distribution breakdown includes 10% allocated to airdrop participants, 25% to core contributors, 8.3% for early investors, and 32.2% dedicated to ecosystem growth.
Despite a strong market entry, concerns over token distribution have fueled discussions within the crypto community. Some users feel the initial community airdrop allocation was lower than expected, while others believe too much of the supply is controlled by the team and foundation.
Controversy Over Yap Farming
One of the most debated aspects of the launch was the Yaps farming mechanism. This system encouraged users to promote Kaito on social media, rewarding those with high engagement. However, the airdrop’s allocation process dissatisfied some participants, as distribution seemed unpredictable.
A trader known as Cnig voiced his frustration, stating, “I’m out here tweeting like my life depends on it for these stupid Yaps… farmed 350-ish and got 1.1k $KAITO, which is the same as what my friends got with 60 Yaps. THEY NERFED MY ASS.”
The controversy highlights the growing trend of engagement-based airdrops, where rewards depend not only on participation but also on perceived long-term alignment with the project.
Kaito NFTs and Price Swings
Kaito’s Genesis NFTs also played a role in the token launch but came with their own share of criticism. Some users accused the whitelist system of favoring insiders, leaving others without access. Despite the complaints, the NFTs surged to 12 ETH before the token snapshot, marking a 120x increase from the original 0.1 ETH mint price. However, prices dropped sharply after the token distribution, first by 67% to 4 ETH and then another 60% to 1.7 ETH.
Kaito has strong backing from major investors, having raised over $10 million in funding rounds led by Dragonfly and Sequoia Capital in 2022 and 2023. While the project has drawn criticism for its airdrop mechanics, its AI-powered data platform and ambitious roadmap suggest it could have long-term potential.