Kaito, an AI social media tokenization project, claimed today that it hasn’t sold any tokens since February. It terminated its agreement with Web3Port, a market maker, over unspecified disputes.
Nonetheless, KAITO has staged a remarkable comeback in the past month, climbing more than 150% in 30 days. Exchange listings and token staking may help build momentum, but the core product still has issues.
KAITO Token Controversy and Market Maker Dispute
Kaito made headlines with its prominent airdrop in February, but things have been very rocky since. The airdrop’s tokenomics attracted harsh criticism from the community, and immense selling pressure quickly blunted its momentum.
Today, the firm claimed that it hasn’t actually sold any KAITO tokens since the controversial events in February:
Kaito also mentioned that its dispute with Web3Port had nothing to do with an unrelated controversy that rocked the company the following month.
Meanwhile, KAITO has been experiencing a major bullish cycle in the past month. The altcoin’s price increased by over 150% in the last 30 days.
KAITO One-Month Price Chart. Source: CoinGecko
It seems particularly noteworthy that KAITO made such a comeback, especially with the firm unable to directly sell its tokens. Still, it enjoyed several victories in this lull period, with major exchanges like Binance and Coinbase listing KAITO.
A few planned updates on May 6 may have helped out even more, as token price and trading volumes both shot up the following day.
In the same vein, Kaito announced the release of rewards for token staking less than two hours after the first statement. Community enthusiasts responded with a lot of hype, with users discussing how this could further incentivize platform growth.
Despite the speculative trading in recent markets, KAITO remains a utility token. The company set very ambitious goals for itself, using AI and tokenization to reward original and high-quality content on social media.
Staking rewards and exchange listings can help boost KAITO’s valuation, but users are still complaining that its core product needs a lot of work. Low-effort posts currently dominate its leaderboard.
All that is to say, it’s difficult to properly assess what the company’s long-term prospects look like yet. On one hand, Kaito’s token has staged a remarkable comeback despite community backlash and the failed Web3Port partnership. Kaito’s success at building utility will ultimately determine its long-term results.
