Kaito AI airdrop announcement sparks concerns over insider allocations

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The cryptocurrency intelligence platform Kaito AI (KAITO) has set aside almost 20% of its token supply for upcoming incentives and airdrops, which has excited early adopters but also raised tokenomics concerns, according to Kaito’s official website.

Kaito AI, an AI-powered platform that specializes in web3 information, announced on February 14th that its whitepaper and native token, KAITO, will be released soon.

Kaito AI tokenomics for Kaito token announced 

With 10% of its entire token supply going to its early community members and ecosystem participants, the platform, which bills itself as the “ultimate Web3 information platform,” is getting ready for its first airdrop. 10% is the initial claim for the community and ecosystem. In an X post on February 20, Kaito AI stated, “This allocation includes the initial Kaito Yapper community, Genesis NFT holders, and ecosystem yappers and partners.”

The platform states that 19.5% of the entire supply will be allocated especially for initial and future airdrops and incentives, while 56.6% of the total will be dispersed to the community and ecosystem.

According to Marcin Kazmierczak, co-founder and chief operating officer (CEO) of RedStone, a blockchain oracle solutions company, the platform is bringing new dynamics to the crypto marketing sector.

“Kaito has changed the way crypto marketing operates. Previously, it was mainly about views and impressions; however, Kaito introduced a new metric, Smart Followers. It allows one to measure how many respected or active crypto accounts interacted with or followed a specific account.” Kazmierczak added.

Analyst raises an early sell-off concern about Kaito AI airdrop 

Although the platform is innovative, some analysts have voiced concerns about its tokenomics, specifically the allocation to insiders, which may lead to pressure to sell after the airdrop.

On-chain analysts have noted that insiders receive a sizable share of the token supply. Insiders receive 43.3% of Kaito’s total supply, which includes 35% for the team and 8.3% for early investors, according to on-chain investigator RunnerXBT. A possible sell-off after the airdrop has also been cautioned by some analysts, especially in light of the present market decline.

Kaito unveiled the Yaps protocol, an open, permissionless system for tokenizing attention, in December 2024. Yaps has been used by a number of teams since its inception for things like reward distribution and innovations in the field of SocialFi, which blends decentralized finance and social media.

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