I don’t think InfoFi is dying (and I don’t think Voh actually does either) - it’s just going through the growing pains that P2E gaming did a couple years ago
What started out as a cool way to incentivize quality content on the timeline to attract users to your project devolved into mindless spamming with 0 conversion or value add for the project when the masses found out about it and started trying to find ways to maximize earning potential.
Sound familiar? Yeah - it’s scholars/grinders/botters from every p2e gaming campaign except this time there is no game it’s just posting on CT.
We already saw how that played out.
The solution here isn’t quite the same as gaming though. There you have to optimize for people playing games because they’re fun, not because they’re trying to make minimum wage as a side hustle. Ultimately player capital in > player capital out or the system collapses.
With InfoFi/mindshare marketing it’s ok to have money out > money in because that’s literally what the marketing budget exists for - it’s a finite campaign designed to convert dollars into users. That’s literally what user acquisition is.
And that’s where the rub is (and something I’ve been very outspoken about for a couple months now) - eventually projects will stop paying people who have no ability to convert new users. Marketing is not charity. It’s not some benevolent desire to just throw money at people for spamming, but projects and teams who haven’t managed well are doing that and it has convinced a bunch of ppl here that this is normal and sustainable.
I believe what you’ll see in the next iteration is a hybrid between the old model of KOL-spend (real influencers, not the ppl with low reach who call themselves KOLs) and the broad leaderboard grinder money shower.
It’ll be a high quality project earmarking money for direct deals with 3-5 “champions” to banner carry, and much smaller portions of marketing spend allocated for grinders on the boards.
Projects will always want to pay for high signal content - that’s literally marketing. They won’t always be willing to give away free money for spamming in an engagement group.
InfoFi is dying (for real this time)
The hard truth about InfoFi is that 99% of users are purely extractive and provide zero value to the companies giving them money
InfoFi was created to hyper-charge brand growth, convert new users, and increase user spend
Unfortunately, the opposite has happened: Low reach, low conversion, and low user spend
Kaito farmers are not providing value or growing awareness for these companies, but simply spamming the timeline with AI-generated threads that nobody reads and replying slop to more notable accounts
- Companies want the biggest KOLs
- Companies want the mid-sized/micro KOLs
- Companies want new users
Companies are paying AT MINIMUM $150,000 for a Kaito leaderboard listing. No shade to Kaito, but what makes it worth $150k in this current model? Most of the InfoFi user base is not comprised of thought leaders, KOLs, and in-app users/spenders— just extractors.
Sure, a couple high signal KOLs/thought leaders yap about (also high signal) projects like Polkadot, Caldera, Sei, and Arbitrum, etc… but what about the other 80+ projects that… nobody has ever heard of?
Yapping about InfoFi as a large KOL is an easy way to grow a quick following and make some cash, but at what cost? Saying you’re a growth expert and ‘here for the little guys’ and can help them grow, when in reality you’re purely here for profit, is kind of f’d up.
If you are solely posting low-effort engagement tweets (follow for follows, giveaways, etc) and Kaito farms, maybe you do not actually care about crypto or blockchain?
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