Exploring Kaito: The Pioneering Standardization of Encryption Twitter Feeds

The world of cryptocurrency turns a new page, with the temptation of "get rich quick" filling every corner. However, upon closer examination of this field, we will find that the true protagonists are actually ordinary investors.

Encryption Twitter (, referred to as CT ), has become an important platform for information exchange in the field. As an opinion leader, I focus more on underlying protocols and data analysis rather than chasing hot topics. Recently, I noticed that "verbal investment" has emerged as a new trend on CT, especially with the Kaito project combining opinion leader marketing with the concept of "sheep shearing," creating a new model.

Kaito has successfully built a communication bridge between project parties and opinion leaders, similar to some well-known internet platforms. After StepN, it has become another project that can continue to operate after issuing tokens.

Kaito is not a brand new concept, but rather the culmination of a decade of Chinese information flow, reflecting this from media frameworks to promoting healthy competition among opinion leaders.

Era of Group Chat: 2018-2021

Looking back at 2018, concepts like cryptocurrency ETFs, stablecoins, and DeFi were not yet mature, and the industry was simpler, centered around Bitcoin and mining. Although the infrastructure was not perfect, investors firmly believed that Bitcoin would eventually appreciate.

The rise of content creation by opinion leaders can be traced back to the "3 o'clock community" in 2018. Since then, WeChat groups and online Q&A have become mainstream marketing methods, allowing founders to communicate directly with potential community members. The involvement of well-known investors marks a broader recognition of this niche communication method.

The Q&A format is similar to the issuance of information assets, while WeChat groups serve as a dissemination platform. The 3 o'clock community plays a role similar to that of a trading platform, collectively forming an important memory of the first true bull market for Bitcoin after 2017.

Although there were already opinion leaders at that time, the "Battle of the Thousand Media" was still dominated by traditional media forms. On one hand, there was insufficient awareness of the influence of opinion leaders in the market; on the other hand, it was the end of the peak period for self-media industry startups.

The market prefers the combination of traditional media personalities and brands, leading to the emergence of multiple encryption media. Among them, a certain media outlet stands out, established in 2017.

The period before May 19, 2017, can be regarded as the most beautiful golden age in the field of encryption currency.

The Brief Prosperity of Twitterscan: 2022

On May 19, 2021, a ban led to a massive migration in the industry. In reality, mining machines and operators traveled across the ocean; in spirit, the encryption community migrated to overseas social platforms, and the information advantage of Chinese media gradually collapsed.

Prior to this, international project teams flocked to the Chinese market. However, after the issuance of the ban, the situation took a sharp turn for the worse. Cryptocurrency is gradually becoming mainstream overseas, with every stage, from venture capital to token listings, increasingly controlled by Silicon Valley and Wall Street, prompting Chinese media to adjust their stance to communicate with overseas project teams.

With the implementation of the ban, high-quality content producers and disseminators have disappeared one after another, leaving a bewildered community of Chinese encryption users. Before the rise of cryptocurrency, the number of Chinese Twitter users was extremely limited.

The era of opinion leaders has officially begun, with technology and investment research opinion leaders taking the lead. At that time, industry tycoons were the main force in content output, and in-depth research became mainstream.

The group of opinion leaders as a profession has just started, but since 2022, there has been a huge change in the situation.

1. Multiple significant events have caused the market to be sluggish, making project analysis difficult to justify.

2. The technical narrative is gradually collapsing, and the gap between high financing and actual delivery results is widening.

Against the backdrop of setbacks in both investment research and technology, professional opinion leaders have finally迎来了高光时刻, with Twitterscan being a representative example. In September 2022, the project completed a funding of 4.56 million USD, and the participation of a well-known investment institution earned it widespread recognition.

The product concept of Twitterscan is not complicated; it helps users discover market trends by organizing cryptocurrency users and content on Twitter. However, Twitterscan faces a critical issue: how to achieve a business closed loop?

Referring to the profit model of similar information flow products, it mainly relies on paid APIs and user grading to generate profits. Obviously, Twitterscan finds it difficult to persuade users to pay for publicly available information a second time.

A certain platform seems to have learned lessons from Twitterscan – it must commercialize and introduce token economics.

Friend Tech: A Venture Focused on Chips (2023)

In 2023, the emergence of the Friend.Tech project conducted the first stress test on the monetization ability of opinion leaders.

The Friend.Tech team has adopted a strategy completely different from Twitterscan, encouraging opinion leaders to trade their own "influence" and even create false influence among each other. This is not surprising, as panic often serves as a catalyst for trading volume.

Friend.Tech is the first blockbuster application launched after a certain public chain, and it may also be the last large-scale application successfully created by anonymous developers. According to data, Friend.Tech had daily active users exceeding 100,000.

Although the number of addresses does not equate to the actual number of users, I believe this data is relatively reliable. A certain English Twitter ranking may be high, but its influence is obviously not as strong as Friend.Tech. The active global cryptocurrency user base is around 100,000.

From August 10 to September 1, Friend.Tech's daily revenue sharply dropped from a high of 1165 coins. Although there were fluctuations afterwards, and it even received investment and plans to issue tokens in 2024, it has been difficult to change its declining trend.

Friend.Tech proves to us:

1. The content itself is difficult to directly monetize and can only serve as an intermediary for information flow and capital flow.

2. Social finance models have repeatedly failed: from early projects to recent attempts, the cryptocurrency field currently has only "asset issuance" as a feasible model.

Twitterscan indicates that pure information flow is difficult to monetize, while Friend.Tech shows that the funding flow model is hard to sustain. However, they both explore some important insights:

1. Encryption of Twitter information is highly valuable, but it requires the right approach, preferably separating the information flow from the capital flow.

2. The future of entrepreneurship will inevitably turn to opinion leaders, who are positioned in the middle ground between exchanges, project parties, and retail investors.

Kaito: Strategic Transformation (2024-2025)

There is a common misconception that Kaito was originally unrelated to the opinion leader business.

In fact, Kaito is a direct product of the artificial intelligence craze in the field of encryption. In February 2023, ChatGPT shook the world, and generative AI showed amazing potential. The cryptocurrency industry, after experiencing turmoil in 2022 and the burst of the metaverse bubble, is eager to achieve breakthroughs with the help of AI technology.

Kaito's initial business model was AI search, but it focused more on cryptocurrency content. Similar products include Adot and others. However, Kaito seems to realize that this path is not smooth.

1. The development cost of traditional blockchain explorer tools is high, profitability is poor, and competition is fierce.

2. The effectiveness of information analysis tools is poor, especially in the area of information discovery; Twitter has not addressed the fundamental issues.

The most notable aspect of Kaito's early development stage was the long-term beta testing, during which invitation codes were in high demand. It is meaningless to determine when Kaito shifted towards ranking opinion leaders, as the success of a certain platform has prompted opinion leaders to actively participate in the competition.

Kaito attracts opinion leaders based on product strength rather than first-mover advantage. Before appearing on a certain platform, cryptocurrency opinion leaders have long been surrounded by bots and spam information since the professionalization and commercialization in 2022. Kaito provides a standout opportunity for "real opinion leaders" for the first time.

It is bold to speculate that Kaito's opinion leader ranking and points calculation may not completely rely on algorithms; human factors might be more important than AI. After all, the number of encryption Twitter opinion leaders is limited, and according to the Pareto principle, human intervention is still feasible within the statistical range of 1000-10000.

Therefore, Kaito adopted a three-step strategy:

1. Separate information flow and capital flow. Opinion leaders focus on improving their rankings, and a certain platform will naturally attract attention. Bots and fake follower accounts will be excluded, and project marketing can identify real opinion leaders through a certain platform.

2. A certain platform does not involve tokens, it is more like a fair market ranking. Although there are phenomena of chart manipulation, it is mainly a healthy competition among opinion leaders. This method can control emotions and popularity, while attracting the attention of project parties and exchanges, achieving the transformation of information flow into capital flow.

3. Kaito has ended the glorious era of traditional agents. Kaito itself is the largest and most standardized agent, which is also the key to its ability to maintain its business model after issuing tokens.

However, a certain event indicates that information flow platforms still face challenges in exploring more tokenization attempts beyond airdrops, staking, and listings. A certain project can continue to split small caps, but the development of information flow platforms is still subject to many limitations.

As for InfoFi, Kaito Connect, Kaito Pro, and other industries or business lines, they have not created new domains beyond a certain platform, and this will not be elaborated here.

In summary, Kaito successfully promoted healthy competition among opinion leaders, occupying an indispensable role in the market. Even if large exchanges attempt to enter this field, the results are unlikely to be particularly ideal. The fair value of the market is difficult to measure, and the social functions of a certain exchange have not surpassed encryption Twitter, which is the best proof of this.

Conclusion

What is Kaito's next development direction?

In simple terms, it is a product that can bridge the flow of information and the flow of funds, generating transactions directly based on the flow of information.

However, achieving this goal is not easy. Encryption users generally do not recognize the value of information flow; they are more concerned with liquidity itself.