What Is Kaito? The Data Layer For The Attention Economy

We live in a time where information can quite literally travel as fast as light. While this technological leap can be celebrated for the increased accessibility, the paradox is that it has also made meaningful insights harder to find.

In candid words, there’s just too much noise on the internet.

This problem is more apparent than in web3. Here, research is scattered across an ecosystem of sources (X, Discord, Telegram, governance forums, GitHub repositories, blogs, etc.).

While this wealth of information holds immense value, it is buried under layers of noise, speculation, and conflicting narratives. Consequently, finding the right insights at the right time can feel like searching for a needle in a haystack. That’s where Kaito comes in, as the first AI-powered crypto search engine to change how blockchain knowledge is accessed, analyzed, and shared.

Enter Kaito AI: Pioneer Of InfoFi

Kaito is an AI-powered search engine and information platform specifically designed for the cryptocurrency space. It aims to solve the problem of information fragmentation in web3 using AI to filter noise, identify relevant information, and provide actionable insights from a wide range of sources.

Founded in 2022 by Yu Hu, a former investment professional at Citadel and Deutsche Bank, Kaito AI has secured $10.8 million in funding across two rounds. Its investors include prominent firms such as Dragonfly Capital and Sequoia Capital China.

Kaito indexes several sources, including social media, governance forums, research papers, news articles, podcasts, and conference transcripts. Then, Kaito transforms extensive unstructured data into actionable insights, facilitating informed user decision-making.

Kaito AI offers premium services to both individual and institutional users.

• For individuals, this includes access to advanced features like real-time sentiment analysis, mindshare tracking, and curated Web3 insights.
• For institutions, Kaito provides subscription-based solutions with enhanced capabilities such as multi-user access, advanced data queries, and API integrations.

InfoFi: The Foundation of Kaito’s Vision for the Attention Economy

Kaito’s concept of InfoFi (Information Finance) came as a response to the growing inefficiencies in how information is accessed, consumed, and valued.

“InfoFi is, in my understanding, basically using market forces to signal the truthfulness of information.”

— Yu Hu | Founder, Kaito AI

Information is power, yet its monetization is highly asymmetric. Platforms and intermediaries extract value from content and engagement, while individual contributors receive little-to-no compensation.

Kaito’s concept of InfoFi treats information as a financial asset. It advocates decentralization, transparency, and user ownership of digital information for a fairer and more efficient attention economy and that creators, users, and brands are rightfully rewarded for their contributions.

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With integrating advanced AI technologies into its indexing and search capabilities, Kaito delivers a more intelligent and efficient way to explore web3 knowledge.

Kaito launched its search engine with large language models (LLMs) in Beta mode in June 2023 for its 35,000 waitlisted users. Its LLMs are uniquely designed with live web data access, setting them apart from traditional models. 

Kaito’s Leadership and Growth

Kaito’s team brings together a powerhouse of talent, including former Citadel money managers, AI engineers from Silicon Valley, academic researchers, and experienced blockchain developers.

In 2023, the company raised $5.3 million in seed funding, with Dragonfly Capital leading the charge. The round also saw backing from Sequoia Capital China, Mirana Ventures, Jane Street, Alpha Lab Capital, Folius Ventures, and others.

Kaito also secured $5.5 million in a Series A round in 2023, led by Spartan and Superscript, pushing its valuation to $87.5 million. This round was focused on improving its AI-driven search engine, which blends large language models (LLMs) with real-time data from social media, governance forums, and industry research, bringing next-level discovery to Web3 users.

Kaito's Proposition: Mindshare Over Metrics

In most high-stakes decision-making, particularly in finance and marketing, quantifiable metrics lead the way. Kaito AI challenges the traditional reliance on superficial metrics like likes and follower counts by emphasizing the importance of mindshare in the crypto world.

In this context, Mindshare refers to the collective attention and engagement a particular token, project, or narrative receives within the crypto community. Kaito argues that actual influence and value are determined not by vanity metrics but by the quality and impact of contributions within the Web3 ecosystem.

Conventional data points only scratch the surface of what truly drives narratives, adoption, and long-term success in web3. Emphasizing mindshare over metrics shifts the focus from raw numerical performance to the collective consciousness and attention dynamics of the crypto industry.

Why mindshare is a superior metric for Web3 decision-making:

• Narratives shape value: Tokens may pump and dump, but strong narratives (e.g., DeFi Summer, AI crypto, real-world asset tokenization) define entire industry cycles.
• Sentiment precedes market action: Market shifts often follow sustained discussions and thought leadership around emerging technologies or trends.
• Community drives adoption: Web3 is inherently decentralized, meaning the success of a project is directly tied to how much mindshare it commands within its ecosystem.

Key Features of Kaito

The Kaito Portal is the main platform where users can access all of Kaito AI's features. It includes a powerful search engine, sentiment analysis tools, smart alerts, customized dashboards, and more.

MetaSearch

MetaSearch is a tool that connects to thousands of premium web3 sources to deliver precise and valuable insights. From token tickers to trending crypto topics and in-depth market analysis, MetaSearch provides comprehensive coverage.

By clicking the search icon, users can access a vast range of listed projects and navigate through extensive data presented in a structured and easily digestible format. It eliminates blind spots and fragmented information, offering a complete market perspective for better decision-making.

Smart Alerts

Smart Alerts keep users in the loop with real-time market shifts. These tailored alerts ensure that users never miss a critical update that could influence their investments.

Users have many options, including an array of credible sources. They can even choose where they get notified – Telegram or Slack. The alert schedule for this feature can be set to real-time, daily, hourly, or weekly.

Sentiments Tracking

Kaito’s AI-powered system analyzes large sentiments in the crypto space to provide meaningful summaries for its users. For example, if there is a sudden bearish sentiment reflected among users, its social analytics dashboard reflects the negative market outlook to warn bullish traders.

In a neutral market sentiment condition, users can look at communities’ discussions and engagement trends on their favorite projects before considering any investment decisions. Along with that, users can compare both bullish and bearish summaries to anticipate potential future market sentiments more efficiently.

Token And Narrative Mindshare

Token Mindshare tracks the buzz around specific tokens by analyzing discussions across various platforms. Whether a project is gaining traction due to major partnerships, ecosystem growth, or community hype, this tool helps users spot emerging trends and potential investment opportunities before they hit the mainstream.

Narrative Mindshare uncovers the key narratives driving conversations, from the rise of modular blockchains to the latest DeFi innovations. By staying ahead of these shifting themes, users can better understand market sentiment, anticipate potential price movements, and align their strategies with the broader industry landscape.

What Is Yap-to-Earn? Earn ‘Yaps’ On Kaito

Users can earn points, called “Yaps,” through meaningful contributions to crypto discussions by sharing high-quality insights, engaging in relevant conversations, and adding value to the web3 community. 

The point system evaluates content relevance and quality, engagement from verified accounts, originality of posts, and overall contribution to crypto discussions. It does not reward spam or low-quality engagement. For example, even using tricks like mentioning Kaito or its related projects in the content doesn’t automatically help in increasing Yap earnings, as the system prioritizes genuine engagement over keyword manipulation.

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Key Aspects of Yap-to-Earn

Content Quality and Engagement

• Volume: The frequency of crypto-related posts.
• Engagement: Authentic interactions such as likes, retweets, and comments.
• Semantics: The relevance and informativeness of the content shared.

Smart Follower Network

The program evaluates the influence of a user's followers, rewarding those whose content resonates with well-regarded figures in the crypto space. 

Yapper Leaderboard

A dynamic ranking system and a dashboard that showcases top contributors based on their accumulated Yap Points, promoting healthy competition and recognition within the community.

This dashboard also displays "Total Yaps," which combines both Earned Yaps and Referral Yaps, giving users a comprehensive view of their contributions and influence within the community.

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Easy Steps to Start Yap-to-Earn

Step 1

To begin, visit the Kaito onboarding website and click on “Sign In.”

Step 2

Next, connect your X account to Kaito.

Step 3

Once the connection with X is verified, click on “Become A Yapper.”

Step 4

Receive the “Kaito Certified Yapper” badge and click “Start Yapping” to begin participating in the Yap-to-Earn program.

Kaito AI Token And KAITO Airdrop

KAITO is the native token of the Kaito AI ecosystem. Users can earn Kaito tokens by contributing valuable content.

Kaito AI token holders get governance rights, enabling them to participate in platform decisions. The token also unlocks access to premium features and exclusive content, enhancing user experience.

Launched on February 20, 2025, Kaito AI’s airdrop distributed 10% of its total 1 billion token supply to early community members, ecosystem participants, and contributors as part of its "Initial Community and Ecosystem Claim."

Read: What is a crypto airdrop

The KAITO airdrop eligibility criteria for the airdrop was as follows:

1. Yaps Program Participants: Users who actively engaged in Kaito's Yap-to-Earn program, earning Yap Points through meaningful contributions on social media platforms like X.
2. Kaito Genesis NFT Holders: Individuals who possessed Kaito Genesis NFTs prior to the snapshot date.
3. Binance BNB Holders: Users who subscribed their BNB to Binance's Simple Earn products between February 6 and February 10, 2025.

KAITO airdrop claim link.

The airdrop ties into Kaito’s broader vision of an InfoFi ecosystem, where the KAITO token serves as both a governance tool and a network currency, rewarding engagement and enabling decentralized decision-making.

Claims went live on the Base network, though users had to pay a small fee of 0.0015 ETH (around $4.10) to claim their tokens, sparking some debate about its impact on accessibility and price dynamics.

The token hit the ground running, with listings on major exchanges like Binance and OKX starting trading on the same day at 1:00 PM UTC, and its fully diluted valuation (FDV) reportedly reaching $1.3 billion shortly after launch.

The airdrop was well-received for its broad distribution. However, concerns linger about potential sell-offs and the 43.3% of supply allocated to insiders (35% team, 8.3% early investors), which could influence future price stability.

Read: How to hunt crypto airdrops

 

Conclusion

Kaito is more than just a web3 search tool; it redefines how crypto information is discovered, analyzed, and utilized. With its AI-powered search engine, real-time sentiment tracking, and innovative Yap-to-Earn program, Kaito is transforming how users engage with blockchain knowledge and trends.

Whether users are searching for the latest market insights, earning Yaps through meaningful discussions, or anticipating a potential airdrop, the platform offers a seamless, intelligence-driven experience. As the ecosystem continues to evolve, Kaito’s commitment to InfoFi and its KAITO token further reinforces its vision of a structured and rewarding knowledge economy in web3.

 

Frequently Asked Questions About Kaito

What are smart followers?

Smart followers are a feature on Kaito that likely refers to AI-driven tools or indicators tracking influential accounts or users whose activity shapes crypto narratives, helping you follow the right voices for insights.

 

Who are considered smart followers by Kaito?

Smart followers on Kaito are influential ‘Crypto Twitter’ accounts, identified by social graph analysis for their high engagement and trusted status within the community, boosting your content’s impact in programs like Yaps.

 

What is Kaito Yaps?

Kaito Yaps are points you earn through Kaito’s "Yap-to-Earn" program by sharing valuable crypto-related posts on X, rewarded based on quality and engagement, with potential ties to future benefits like token airdrops.

 

How to earn more Yaps on Kaito?

To earn more Yaps, post insightful, original crypto content on X that gets high engagement. Kaito’s AI evaluates relevance and impact, so focus on quality takes, avoid spam, and tap into trending topics.