Introduction

1.1 Background and Purpose

In recent years, the cryptocurrency market has experienced rapid development and changes, from the birth of early Bitcoin to the diverse range of digital currencies today. This emerging financial sector is gradually changing the global investment landscape and financial ecosystem. With the continuous advancement of blockchain technology, more and more innovative projects are emerging in the cryptocurrency market. They are trying to address pain points in the traditional financial system and provide new opportunities for investors through various unique concepts and technologies.

Against this backdrop, KAITO, as an AI-driven digital asset research platform, has emerged in the cryptocurrency market. It is committed to using artificial intelligence technology to completely revolutionize the research and investment methods of cryptocurrencies, providing investors with more precise and efficient decision support. The emergence of KAITO has not only injected new vitality into the cryptocurrency market but also triggered widespread attention from the industry and academia.

Overview of the KAITO project

2.1 Project Definition and Positioning

KAITO is an AI-driven digital asset research platform, whose core positioning is to fundamentally change the way cryptocurrencies are researched and invested through artificial intelligence technology. In the cryptocurrency market, the acquisition and analysis of information are crucial for investors’ decision-making. However, due to the high degree of decentralization and the vast amount of information in the cryptocurrency market, investors often find it difficult to quickly and accurately obtain valuable information to make wise investment decisions.

The emergence of KAITO is precisely to address this pain point. It utilizes advanced AI technology to real-time aggregate, sort, and organize cryptocurrency-related information from multiple channels such as social platforms, publishing platforms, industry research, and news websites. By conducting in-depth analysis and mining of this information, KAITO provides investors with comprehensive and accurate market intelligence, helping them better understand market trends and seize investment opportunities.

KAITO is not only an information aggregation platform, but also an intelligent assistant that can provide personalized services to investors. Through AI technology, it realizes functions such as ranking, topic mining, personalized recommendation, speech-to-text, etc., and can provide customized information and analysis reports for investors according to their needs and preferences. In addition, KAITO also plans to integrate AI models such as ChatGPT/GPT-3 to further improve its information processing and analysis capabilities and provide investors with more intelligent services.

2.2 Background and Team

KAITO was founded in 2022 by Yu Hu, a graduate of the University of Cambridge. Yu Hu was a hedge fund manager at Citadel and has rich experience and profound professional knowledge in the financial field. His work experience at Citadel has given him a deep understanding of the operation mechanism and investment strategies of the financial market, which has also accumulated valuable experience for him to establish KAITO.

Against the backdrop of the booming cryptocurrency market, Yu Hu keenly perceived the enormous potential of artificial intelligence technology in the research and investment field of cryptocurrencies. He believes that through AI technology, the problems of information asymmetry and low analysis efficiency in the cryptocurrency market can be effectively addressed, providing investors with more accurate and efficient decision support. Therefore, he resolutely decided to establish KAITO, dedicated to building a new AI-driven digital asset research platform.

In addition to Yu Hu, KAITO’s team members also include professionals from different fields, who have rich experience and professional skills in artificial intelligence, data science, blockchain technology, financial analysis, and more. For example, Sandra Leow is a research partner at Kaito, who previously served as a research manager at Nansen and has accumulated extensive experience in cryptocurrency research; Tianqi Wang has worked at Deutsche Bank and Credit Suisse, responsible for KAITO’s business development; Jiwoo Jun previously worked at Beoble and also contributed to KAITO’s development.

In terms of financing, KAITO has completed two rounds of financing, with valuations of $40 million and $87.5 million respectively, raising a total of $10.8 million. Investors include well-known institutions such as Dragonfly, Sequoia Capital China, and Spartan Group. The participation of these well-known investment institutions not only provides ample financial support for KAITO but also demonstrates market recognition and confidence in the KAITO project.

KAITO’s technology and products

3.1 Core Technology Architecture

KAITO’s core technology architecture is based on advanced AI technology and is committed to solving the problem of information dispersion and analysis difficulties in the cryptocurrency market. Its technical architecture mainly includes the following key parts:

• Multi-source data integration: KAITO is able to aggregate cryptocurrency-related information in real-time from multiple channels such as social platforms (e.g., Twitter, Discord), publishing platforms (e.g., Medium, Mirror), industry research, and news sites. Through this multi-source data integration, KAITO provides users with comprehensive market intelligence and avoids the tedious process of switching searches between multiple platforms.
• AI optimized search results: In addition to aggregating information, KAITO also utilizes AI technology to optimize search results. Through ranking, topic mining, personalized recommendations, voice-to-text, and other functions, KAITO can provide more accurate information to users based on their needs and preferences. For example, through topic mining, KAITO can delve into a massive amount of cryptocurrency information, identify popular topics and trends, and provide valuable references to users; personalized recommendations recommend relevant information and analysis reports based on users’ historical search and browsing records, improving the efficiency of information retrieval for users.
• AI model integration: KAITO plans to integrate AI models such as ChatGPT/GPT-3 to further improve its information processing and analysis capabilities. These state-of-the-art AI models are able to understand natural language and generate high-quality text content to serve users more intelligently. For example, users can ask questions in natural language to get the latest developments in the cryptocurrency market, investment advice, and more, and KAITO’s AI model will quickly generate accurate and detailed answers based on the user’s questions.

3.2 Analysis of Key Product Features

3.2.1 MetaSearch

MetaSearch, one of KAITO’s main products, is an AI-powered vertical search platform. Its core function is the ability to aggregate, sort, and organize cryptocurrency-related information in real time, covering a variety of platforms such as social platforms, publishing platforms, industry research and news websites. Through MetaSearch, users can search for information in the entire crypto field on one platform, without the need to switch between multiple platforms, greatly improving the efficiency of information acquisition.

MetaSearch’s advantage lies in its powerful information processing capabilities and personalized services. It utilizes AI technology to analyze and organize massive amounts of cryptocurrency information in real time, providing users with the required information quickly and accurately. At the same time, MetaSearch also supports personalized search, recommending relevant information and analysis reports based on users’ interests and preferences. For example, users can set their preferred cryptocurrency projects, market trends, and other keywords of interest, and MetaSearch will push the latest relevant information to users based on these keywords.

3.2.2 Kaito Portal and Kaito Pricing

Kaito Portal and Kaito Pricing are two other important products from KAITO, both of which are committed to integrating Web3 data from multiple channels to provide users with comprehensive market intelligence and analysis tools.

Kaito Portal provides functions such as meta-search, sentiment tracking, smart alerts, and custom dashboards. By integrating Web3 data from multiple channels such as Twitter, Discord, governance forums, etc., Kaito Portal can help users quickly grasp market trends and seize investment opportunities. For example, the sentiment tracking function can analyze user sentiments on social media, determine whether the market’s view on a particular cryptocurrency project is positive or negative, and provide references for users’ investment decisions; the smart alerts function can timely remind users to pay attention to important market information based on the keywords and conditions set by the users.

Kaito Pricing likewise integrates Web3 data across multiple channels, offering features such as metasearch, sentiment tracking, smart alerts, and custom dashboards. Unlike Kaito Portal, Kaito Pricing is more focused on providing price data and market analysis for cryptocurrencies. It can track the price trend of cryptocurrencies in real time, analyze market supply and demand, and provide users with professional market analysis and investment advice.

3.2.3 Kaito Yap

Kaito Yap is a fission marketing tool launched by KAITO, and its main purpose is to achieve traffic fission through user sharing data. Specifically, Kaito Yap encourages users to share personal Crypto Twitter data (such as the number of “smart followers”) to achieve low-cost and efficient traffic fission through point incentives, and plans to use tokens to incentivize them in the future.

Kaito Yap’s working mechanism is based on the user’s social relationship network. When users share their data on Crypto Twitter and tag Kaito, other users can see these shared contents, attracting more users to participate in Kaito’s ecosystem. At the same time, the points obtained by users through sharing can be exchanged for various rewards, further stimulating users’ enthusiasm for participation. This viral marketing model not only rapidly expands Kaito’s user base but also enhances user stickiness and loyalty to Kaito.

3.2.4 Kaito API

Kaito API provides standardized data interfaces and customized reporting services for enterprises and research institutions. Through Kaito API, enterprises and research institutions can access various data on the KAITO platform, including cryptocurrency market data, user behavior data, etc., to assist clients in precision marketing, public opinion monitoring, and data-driven decision-making.

For businesses, Kaito API can help them better understand the cryptocurrency market and develop more precise marketing strategies. For example, enterprises can use the Kaito API to obtain users’ interest and demand for a certain cryptocurrency project, and launch relevant products and services in a targeted manner. For research institutions, the Kaito API provides a wealth of data resources that help them conduct more in-depth academic research and market analysis. In addition, Kaito can also provide customized reporting services according to customer needs, providing customers with professional market analysis and advice.

KAITO’s market strategy and operation model

4.1 Traffic Acquisition and Platform Selection

In the competitive cryptocurrency market, traffic acquisition is one of the key factors for project success. KAITO chooses Twitter as the primary traffic acquisition platform, a decision backed by profound market considerations.

From the perspective of traffic structure, the traffic in the consumer goods industry is generally divided into public domain traffic and private domain traffic. There are mainly two ways to obtain traffic: advertising and viral marketing. In the crypto industry, Twitter and YouTube belong to public domain traffic, while Telegram and Discord belong to private domain traffic. Currently, the concentration of traffic on Twitter and YouTube remains the highest in the crypto industry. Although private domain traffic helps in conducting more detailed user analysis, its structure is single and difficult to track effectively, which greatly limits the potential for market expansion. In contrast, public platforms like Twitter are not only easy to spread but also quickly correct and provide feedback on information, providing an excellent showcase for product promotion.

4.2 Incentives and User Participation

In order to increase user engagement and enhance community development, KAITO has launched the Yaps program. Yaps is an open and permissionless system, launched in December 2024. The system allows users to earn Yap points by sharing valuable information on X platform (formerly Twitter) and tagging Kaito, with these Yap points being the key parameters for Kaito airdrops.

The core mechanism of the Yaps plan is to incentivize users to share high-quality cryptocurrency-related content through points. Users post cryptocurrency-related posts on the X platform, and if these posts are considered ‘high-quality,’ users will receive Yaps point rewards. The definition of ‘high-quality’ here is mainly based on the following considerations:

• Proof-of-work: Kaito encourages users to post crypto-related posts and avoid chatter or casual speech. Users need to consistently provide valuable content, such as tweeting about crypto multiple times a day, and making sure to include relevant keywords. It’s okay to write about something you’ve learned recently, comment on recent events, share your thoughts on different protocols, etc.
• Proof of trade: Real participation based on reputation-weighted impact analysis. Not all X accounts are equal. Kaito’s algorithm will consider the number of ‘Smart followers’ in a user’s account. The more ‘Smart followers’ an account has, the greater its influence. If a user’s post can attract accounts with a large number of ‘Smart followers’ to participate (such as comments, likes, or shares), the user will earn more Yaps points. For example, a user with fewer followers writes an interesting post that attracts a blogger with over 3000 followers to participate, then this user may earn more Yaps than those with only 30 followers.
• Insightful Proof: weighted by relevance, information, originality, etc. Kaito hopes to see content that can provoke thoughts and drive the development of Crypto. In terms of relevance, the content written by users should be a ‘hot’ topic at present, and the ratio of mindshare on Kaito can be referred to understand hot topics; In terms of information, high-quality long articles combined with high account participation are more in line with the requirements; In terms of originality, Kaito encourages users to share unique content and analysis, as it is difficult to earn Yaps points for posts that are copied and pasted or rewritten with AI.

Through the Yaps program, users can earn YAP points by sharing information, which can not only be used as a symbol of honor, but also may be rewarded with airdrops in the future, which greatly inspires users to participate. In order to earn more Yaps points, users will actively share valuable cryptocurrency information, thus promoting information exchange and knowledge sharing within the community, and enhancing the activity and cohesion of the community. At the same time, the Yaps program has also attracted a large number of users to KAITO, and these users have gained a deeper understanding and recognition of KAITO’s products and services in the process of participation, which has further promoted the development and growth of the KAITO community.

4.3 Cooperation and Interaction with KOLs

KAITO attaches great importance to cooperation and interaction with KOL (Key Opinion Leaders). Through collaboration with KOLs, KAITO can leverage their influence and expertise to expand its own influence and user base.

In the cryptocurrency market, KOLs usually have high visibility and authority in specific fields, and their opinions and recommendations often influence the decisions of their fans and followers. There are several main ways in which KAITO collaborates with KOLs:

• KOL Endorsement: KAITO invites well-known cryptocurrency KOLs to endorse its project, increasing KAITO’s visibility and credibility in the market through KOL recommendations and publicity. For example, some influential bloggers, analysts, etc. in the cryptocurrency field will share their opinions and experiences with KAITO on their social media accounts, and recommend KAITO’s products and services to their followers. This kind of KOL endorsement can quickly attract the attention of a large number of potential users, so that more people can understand the value and advantages of KAITO.
• Cooperative promotion: KAITO cooperates with KOLs to carry out various promotional activities to jointly promote KAITO’s products and services. For example, KAITO will cooperate with KOLs to hold webinars, seminars and other activities, inviting KOLs as guests to share the latest developments and investment strategies in the cryptocurrency market, as well as introduce the features and benefits of KAITO. In these events, KOLs can use their expertise and influence to engage users, while KAITO can showcase their products and services through events to increase awareness and interest in them.
• Data collaboration: KAITO leverages its technological advantages to provide data support and analysis services to KOL, helping KOL better understand market dynamics and user needs. At the same time, KOL can also provide feedback on their experiences and insights to KAITO, assisting KAITO in optimizing products and services. For example, KAITO can analyze the fan interaction data of KOL on social media to provide KOL with analysis reports on fan interests and needs, helping KOL develop more targeted content strategies; KOL can provide suggestions to KAITO on product features and market demands based on their observations and experiences in the market, helping KAITO continuously improve its products and services.

Through close cooperation and interaction with KOLs, KAITO can not only expand its influence and user base, but also continuously optimize products and services, enhance user experience by leveraging the professional knowledge and experience of KOLs. At the same time, KOLs can also benefit from the cooperation with KAITO, such as gaining data support, enhancing their own influence, etc., achieving mutual benefits and win-win situation for both parties.

The current development and market performance of KAITO

5.1 Token Economic Model Analysis

$KAITO is the native token of the KAITO ecosystem, with a total supply of 1 billion tokens. This fixed total supply model provides a foundation for the stability of the token’s value. In terms of token distribution, it presents a diversified characteristic to ensure the balanced development and effective incentives of various key elements in the ecosystem.

• Community and Ecosystem: Accounting for 56.67% of the total supply, this fully reflects KAITO’s emphasis on community building and ecosystem development. Among them, 19.5% is allocated for initial and long-term community airdrops and incentives, aiming to attract more users to participate in KAITO’s ecosystem, stimulate user enthusiasm and loyalty through airdrop rewards; 25% is allocated to core contributors, recognizing the hard work and contributions of the core team and developers, helping maintain team stability and continuous innovation capability; 32.2% is used for ecosystem and network growth, providing financial support for the expansion and development of the ecosystem; 2% is allocated to Binance holders, this collaboration with a well-known cryptocurrency exchange platform helps enhance KAITO’s market visibility and liquidity; 10% is used for initial community and ecosystem claims, encouraging community members to actively participate in ecosystem development; 7.5% is allocated for long-term creator incentives, motivating creators to continuously produce high-quality content, enriching the ecosystem’s information resources; 5% is used for liquidity incentives, promoting token circulation in the market, increasing market activity; 8.3% is distributed to early supporters, rewarding investors who participated early and supported the project, enhancing their confidence in the project.
• Foundation: Reserved 10% of the tokens as the foundation reserve. The foundation plays an important role in the ecosystem, responsible for managing and operating various affairs of the ecosystem. This reserve fund provides economic security for the operation of the foundation.

In the KAITO ecosystem, $KAITO plays multiple key roles, becoming the core element driving the operation of the entire ecosystem.

• Driving Market Forces: Token holders can shape the network by influencing the allocation of market attention. Their decisions and actions can guide the flow of market resources, thus affecting the development of various projects and applications in the ecosystem. For example, holders can stake or spend $KAITO to obtain advanced data services, such as real-time trend analysis, depth reports, etc. These advanced services can help users better grasp market dynamics and make wiser investment decisions.
• Cryptocurrency: $KAITO is the main trading medium within the Kaito ecosystem, used to pay for various service fees within the platform, such as API calls, advertising placements, etc., and is also used for Yaps transaction settlements. This unified trading medium simplifies the trading process within the ecosystem, improves transaction efficiency, and promotes economic activities within the ecosystem.
• Community governance: token holders have the right to participate in ecosystem decision-making. They can propose, vote, and implement key protocol and algorithm changes to ensure the network evolves according to community interests. For example, holders can participate in adjusting the weight of the Yaps algorithm, allocating airdrop ratios, and other important decisions. In this way, community members can collectively participate in ecosystem governance, ensuring the fairness, justice, and sustainable development of the ecosystem.

5.2 KAITO Token Market Performance

On February 20, 2025, KAITO was listed on multiple major exchanges, marking an important milestone in its market development. After listing, the price trend of KAITO has attracted much attention. According to the data from Gate.io, on the day of listing, KAITO’s price experienced a significant increase, reaching a high of $1.87 at one point during the day, with a market value of $458 million in the Asian morning session. This increase was accompanied by a large increase in trading volume, with KAITO’s trading volume exceeding $2.1 billion in the past 24 hours, demonstrating strong market demand for KAITO and high investor interest.

Currently, KAITO has been listed on the Gate.io spot trading area, click to trade:https://www.gate.io/trade/KAITO_USDT

Conclusion

KAITO is an AI-driven digital asset research platform, with its core positioning to fundamentally change the way cryptocurrencies are researched and invested in through artificial intelligence technology. In the cryptocurrency market, obtaining and analyzing information is crucial for investors’ decision-making. However, due to the high fragmentation and vast amount of information in the cryptocurrency market, investors often find it difficult to quickly and accurately access valuable information to make wise investment decisions.