InfoFI just flipped the script, but not the way you thinik...
On Aug 7–8, @KaitoAI pushed one of the most aggressive algorithm updates since launch, targeting AI slop, engagement farming, and leaderboard loopholes. This wasn’t a cosmetic patch. It was a purge.
Accounts with <10 yaps? Gone
Low mindshare %? Cut
Fake engagement from bot followers or echo chambers? Penalized
The update introduced minimum thresholds to even qualify: you now need a certain yap count, signal quality, and a smarter follower base. Leaderboards were reset. Some users dropped from top 5 to completely unranked. It’s not just numbers, it’s who listens to you and how you move signal....
The shift’s sparked backlash, especially from smaller creators. But underneath the chaos is a serious move toward quality control. The AI-generated filler era just got checked. Whether that sticks? Depends on what comes next.
Behind the scenes, infra keeps going.
MetaMask integrated Layer-1 Sei. Pendle dropped a new yield unit product. Build on Bitcoin (BOB) secured another $10M. And projects like Xion, Aptos, and Peaq positioned themselves within rising narratives like DePIN, tokenized real-world assets, and consumer-ready UX.
If there’s one takeaway, it’s this: capital is rotating, but narratives are compounding.
We’re moving from altseasons to altweeks, shorter windows, faster moves, more fragmentation. I don't think we will have a like 6 months of altcoin, it may be even shorter than we expect like 2-3 months, tops...
Stablecoins ($267B market cap) now anchor these rotations, replacing BTC as the on-chain liquidity base. That said, where i live and work in Hong Kong, stablecoins is taking shape fast and hard and theres China money coming into it toooo
Traders no longer follow a clean FIAT → BTC → ETH → alts cycle. They rotate directly from stables into AI, memecoins, PolitiFi, or RWA sectors, depending on which ticker’s flashing green.
The rotation is happening faster, and it’s more competitive. If you’re not early, you’re forgotten. And if you’re not positioned before the TGE, the ETF, or the integration, you’re already too late.
Right now? Might just be the quiet moment before everything wakes up. If you don't rotate capital, do check out my previous posts on rotating your attention or yapping on kaito infofi instead...
position yourself accordingly.
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