The post Is InfoFi an investable sector? Crypto’s attempt to tokenize attention appeared on BitcoinEthereumNews.com.

This is a segment from the 0xResearch newsletter. To read full editions, subscribe. One of the longstanding complaints against Big Tech is that they “exploit” user data for their own profit. In some sense, I guess that’s true. I’ve used Twitter for years, and was never paid a cent for giving up any information about my demographics and interests.  But is that “exploitation?” Sure, my data is valuable in hindsight. But billions of dollars in cloud infrastructure and data analytics had to be invested to turn it into something economically valuable that marketers want to buy. InfoFi, short for “Information Finance,” is a niche sector in crypto looking to do something similar. Is InfoFi an investable category? Consider Kaito, the leader in this space. Kaito has two main products. Both of these products generate a substantial $33 million in annualized revenue, based on Dune. The first is its data analytics platform, offering structured, sentiment analysis of public information. This is packaged as a monthly $833 subscription service that is sold to traders, AI agent companies and funds whose businesses depend on accurate sentiment tracking. The second is a B2B service for crypto companies doing marketing. Dozens of prominent projects use Kaito for this purpose today. The rough idea is this: Companies want to do marketing. Rather than the traditional top-down way of sponsoring events, media or paid influencers, Kaito offers an alternative way to incentivize bottom-up and organic content marketing. Anyone can register on Kaito, start tweeting about a listed project on Twitter, and earn a share of these rewards. dYdX, for instance, is committing $50k a month in tokens for such a campaign with Kaito.  The problem, of course, is that this opens the door to all manner of trolls and low-quality content. That’s where Kaito’s proprietary AI tech…

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Filed under: News - @ May 22, 2025 5:24 pm