The Kaito project, merging AI and data analysis, launched its KAITO token in February 2025 through an airdrop. While the token’s listing generated a lot of hype, the distribution method has left the community with mixed reactions.
In this article, we take a closer look at Kaito (KAITO) and explore the challenges and concerns it has faced up to this point.
What is Kaito?
The Kaito platform states that it offers users a powerful tool for analyzing financial data, using artificial intelligence to collect and process the information that drives the cryptocurrency market. In theory, this would help investors and traders get a clearer, more complete picture of what’s happening, allowing them to make quicker, more informed decisions.
Kaito’s documentation says the network pulls data from over a thousand different sources — everything from social media and analytical platforms to specialized forums and news outlets. Even the most experienced analysts would have a hard time processing this vast amount of information quickly.
How does Kaito work?
Seemingly powered by a custom AI model known as LLM (Large Language Model), Kaito’s data collection apparently digs into multiple levels of information. This allows it to understand both big-picture trends in crypto and the finer details of specific sectors.
The Kaito network is made up of three main components:
Kaito Connect. This is Kaito’s Information Finance (InfoFi) protocol powered by blockchain and AI technologies. Kaito Connect acts as a tool for efficiently searching and analyzing financial info, similar to the well-known ChatGPT, but tailored for the InfoFi network.
Kaito Pro. Next is an advanced search engine. Unlike Kaito Connect, Kaito Pro digs into sources that are typically inaccessible to regular search engines. It is a paid tool that regularly updates its data to ensure more effective analysis.
Kaito Yaps. This is a social media analysis tool that evaluates market sentiment based on key engagement metrics (such as likes, views, and interactions). Yaps rewards users for creating valuable content and engaging with others in the crypto space on platforms like X.
What is Kaito cryptocurrency?
Kaito (KAITO) is the platform’s native token, which was officially listed on major cryptocurrency exchanges on February 20, 2025.
What is Kaito used for? Token holders use Kaito cryptocurrency for a variety of activities within the platform. They can pay for services, access premium content, and engage in other financial transactions. Additionally, token holders have a say in the platform’s future, as they can participate in governance, helping to shape the direction of the ecosystem.
Kaito price history
As of March 13, 2025, the Kaito token has been live for just over three weeks.
It had a strong start, reaching its highest point of $2.92 on February 27, just a week after launch. However, the price has been quite volatile since then. On March 13, it dropped to around $1.46, but later that day, it bounced back to $2.18 before falling again. Right now, as of March 13, the token is trading at around $1.40, which is a 51% drop from its all-time high.
Controversy around Kaito
The Yaps mechanism used to distribute Kaito tokens has sparked controversy. It rewarded those who actively mentioned the project and drew attention to Kaito on social media.
However, the system was criticized for its lack of transparency, as users with more followers received bigger rewards, and the Kaito AI algorithm determined who was deemed most aligned with the community. Many users expressed dissatisfaction with the final distribution.
Additionally, the whales who received the most tokens quickly sold them, creating significant downward pressure on the price right after the airdrop, which raised concerns of speculation and insider trading.
FAQ
How many Kaito are there?
As of early March 2025, around 241 million KAITO tokens are in circulation, making up less than 25% of the total supply. The total supply is capped at 1 billion tokens, with no additional KAITO tokens to be issued once this limit is reached.
Who created Kaito?
Kaito was created by Yu Hu, a former managing director at the hedge fund Citadel. The project was founded in 2022, combining artificial intelligence with cryptocurrency data analysis to offer real-time market insights and build a decentralized governance structure within the ecosystem.
Is Kaito secure?
It’s difficult to say whether Kaito is secure. It will be interesting to see how the $KAITO price performs moving forward, as things aren’t so simple with the token, and many people were dissatisfied with the airdrop.
