Kaito, an AI social media tokenization project, claimed today that it hasn't sold any tokens since February.

Kaito made headlines with its prominent airdrop in February, but things have been very rocky since. The airdrop's tokenomics attracted harsh criticism from the community, and immense selling pressure quickly blunted its momentum.

Kaito, an AI social media tokenization project, has reportedly not sold any tokens since February, according to a statement from the company on Saturday.

The firm also claimed to have terminated its agreement with Web3Port, a market maker, over unspecified disputes. The company first announced the partnership in February.

“The agreement with Web3Port was one of several market-making agreements Kaito entered into around the February 20 TGE to support initial trading price stability with several market makers,” a spokesperson said.

“After the TGE, Kaito voluntarily decided to terminate the agreement with Web3Port on February 27.”

This dispute is unrelated to another controversy that rocked Kaito in March, when a partnership with a cryptocurrency exchange went awry.

The company’s internal disputes come amid a major bullish cycle for its native token, KAITO. The altcoin’s price has increased by over 150% in the last 30 days.

Exchange listings and token staking may be helping build momentum, but users are still complaining that Kaito’s core product has issues.

Rising KAITO Token Price After a Prominent Airdrop

Kaito first made headlines with its prominent airdrop in February, which distributed tokens to several social media platforms. The airdrop’s tokenomics attracted harsh criticism from the community, and immense selling pressure quickly blunted its momentum.

However, it seems that the company has since pulled back from selling its tokens.

The company is focused on building a social media platform where original and high-quality content gets rewarded with its native KAITO tokens.

In the company’s own words, it aims to “build a better social media through blockchain and AI technology.”

Despite the speculative trading in recent markets, KAITO remains a utility token. The company set very ambitious goals for itself, using AI and tokenization to reward original and high-quality content on social media.

However, it’s difficult to properly assess what the company’s long-term prospects look like yet. On one hand, Kaito’s token has staged a remarkable comeback despite community backlash and the failed Web3Port partnership.

Kaito’s success at building utility will ultimately determine its long-term results.