The AI-powered Web3 search engine Kaito AI recently announced the completion of its KAITO Yaps snapshot, followed shortly by the Genesis NFT snapshot. On-chain analysts have discovered that Kaito has deployed 1 billion tokens on the Base blockchain, with 33.3% of the total supply potentially allocated to an airdrop.
This means that up to 333 million $KAITO tokens could be distributed to NFT holders and active Yap contributors. Based on Kaito's last funding round valuation of $87.5 million, the theoretical total airdrop value approaches $28.875 million.
Kaito has designed a two-tier airdrop system:
- Genesis NFT Holders: 1,500 NFTs will share 15% of the airdrop pool (approx. $4.32 million), with each NFT estimated to receive $2,880 worth of $KAITO.
- Yap Contributors: The remaining 85% ($24.555 million) will be distributed proportionally based on Yap points. Current estimates suggest each Yap could be worth approximately $13.
As the market recognized the scale and potential returns of this airdrop, FOMO (Fear Of Missing Out) sentiment intensified. Users rushed to climb the points leaderboard, and discussions about Kaito flooded social media, marking the start of a Web3 "airdrop hunger games."
Understanding Kaito: The AI Pioneer in Web3 Information
If EigenLayer is the hottest "liquid restaking" project, then Kaito is a pioneer in the emerging field of Information Finance (InfoFi). Its goal is to become the Google + Bloomberg Terminal for the crypto world.
Founded by Yu Hu, a former quantitative trader at Citadel, Kaito aims to solve the problem of information fragmentation in Web3. It uses AI models to aggregate and analyze vast amounts of scattered data from sources like Twitter, Discord, and governance forums. Its core product, MetaSearch, is an intelligent search engine designed for crypto investors.
Unlike traditional search engines, Kaito not only indexes various Web3 data sources but also uses technology similar to ChatGPT to generate deep analysis. This allows investors to gain market intelligence and identify on-chain alpha opportunities quickly, earning it the nickname "Web3's Alpha Hunter."
Kaito's performance over the past two years has attracted significant attention from top venture capital firms, underscoring its perceived value:
- Seed Round (Feb 2023): Led by Dragonfly, raising $5.3 million at a $40 million valuation.
- Series A (Jun 2023): Led by Superscrypt and Spartan, raising $5.5 million and boosting the valuation to $87.5 million.
- Growth Milestone (Jun 2024): Kaito announced it had achieved profitability, transitioning from a "cash-burning startup" to a self-sustaining AI platform.
This venture backing signifies strong belief in Kaito's business model and strengthens its ecosystem value, providing a solid foundation for its future token economy.
Beyond being a search tool, Kaito has built a comprehensive information economy. Through its "Yap to Earn" model, users can earn Yap points by:
- Contributing Content: Posting crypto market analysis on Twitter and tagging @KaitoAI.
- Social Sharing: Inviting friends to participate, sometimes using multi-account tools to increase efficiency.
- NFT Utility: Holding a Genesis NFT (mint price 0.1 ETH) boosts airdrop weightings, with potential rewards estimated to reach up to $13,000.
This mechanism directly converts information and attention into on-chain assets, transforming Kaito from a mere tool into a platform for "mining" rewards.
Estimating the Airdrop: Four Valuation Models
The crypto community has employed various models to estimate the potential value of Yap points and Genesis NFTs. These models range from theoretical extremes to more grounded, data-driven approaches, reflecting the spectrum of market expectations.
1. Fully Diluted Valuation (FDV) Model: The Theoretical Maximum
This model starts from Kaito's potential Fully Diluted Valuation (FDV) to calculate a theoretical maximum value for Yap points.
One analyst used the formula: FDV × Airdrop Percentage / Total Yap Supply. The assumptions were:
- A future FDV of $1 billion for Kaito.
- 30% of tokens allocated to the airdrop.
- The Yapper program running for 90 days, releasing a total of 2.275 million Yaps.
Based on this, the model calculated a value of $131 per Yap.
Limitations: This model is highly speculative. It doesn't account for the separate NFT airdrop allocation, and the assumptions for total Yap supply and future FDV are idealistic and easily influenced by market liquidity and exchange listings. Nonetheless, it represents an optimistic ceiling for potential value.
2. NFT Voting Power Model: A Community-Centric Approach
This model attempts to establish a relative valuation between Yap points and Genesis NFTs based on their designed utility within the ecosystem.
The model assumes:
- A Genesis NFT has a market price of 9.3 ETH.
- This NFT grants a voting power equivalent to 1,162 Yaps.
From this, it derives a theoretical value of $22 per Yap.
Limitations: This value is highly sensitive to the fluctuating price of ETH and the NFT's own market liquidity. Furthermore, it presumes that governance "voting power" directly correlates with monetary value, which may not be the case.
3. Competitor Comparison Model: Grounding Value in Reality
This approach compares Kaito to established projects in analogous sectors to ground its valuation in existing market logic. A common comparison is with Hyperliquid, a decentralized exchange (DEX).
- Product-Market Fit (PMF): Hyperliquid operates a proven DEX model, while Kaito is pioneering the unproven InfoFi niche.
- Market Comparables: Hyperliquid can be compared to DEXs like dYdX. Kaito lacks direct competitors, with the closest being social-fi projects like Friend.tech, which have struggled with sustainability.
- Value Capture: Hyperliquid has a clear token burn mechanism. Kaito's value accrual mechanics for its token are not yet fully defined.
This analysis suggests that Kaito's token rewards are unlikely to surpass those of a established project like Hyperliquid, implying a much lower Yap valuation than the FDV model suggests.
4. Funding-Based Valuation Model: Data-Driven Expectations
This model uses Kaito's actual funding round valuation as a baseline for a more realistic estimate, then applies observed market multipliers from similar projects.
- Base Calculation: Using the Series A valuation of $87.5M and the 33.3% airdrop allocation, the base estimates are ~$2,880 per NFT and ~$13 per Yap.
Market Multipliers: The model then looks at similar projects:
- Story Protocol: Achieved a 16x multiplier from its funding valuation. Applying this suggests an NFT value of $2,218-$2,880 and a Yap value of $10-$13.
- Berachain: Achieved an 8x multiplier. Applying this suggests an NFT value of $5,357 and a Yap value of $24.
- In a peak FOMO scenario, mimicking Berachain's highest valuation moment, values could theoretically spike to $13,000 per NFT and $59 per Yap.
Key Factors Influencing Final Airdrop Value
The actual value users receive will ultimately be determined by several dynamic factors after the token generation event (TGE):
- Market Reception & Liquidity: Strong demand and deep liquidity on exchanges can significantly drive the token price above initial valuations.
- Project Execution & Utility: Kaito's long-term success in building a closed-loop InfoFi ecosystem where the token captures real value is crucial for sustained price appreciation.
- Market Sentiment: The duration and intensity of the current FOMO cycle will cause significant short-term volatility. The hype can inflate prices rapidly, but it can also deflate just as quickly.
- Tokenomics & Release Schedule: The specifics of the token unlock schedule for investors and team members can impact selling pressure. 👉 Explore more strategies for evaluating tokenomics.
Frequently Asked Questions
What is Kaito AI?
Kaito AI is an AI-powered search engine designed for the Web3 space. It aggregates and analyzes data from various crypto-related sources to provide users with actionable market intelligence and insights.
How can I qualify for the Kaito airdrop?
There are two primary ways: holding a Genesis NFT or accumulating Yap points by creating content, engaging on social media, and referring friends to the platform before the snapshot dates.
When will the $KAITO token be distributed?
The official token generation event (TGE) date has not been announced. Distribution will occur after the snapshot process is complete and the project finalizes its launch plans. Always refer to official Kaito channels for announcements.
Are the estimated airdrop values guaranteed?
No, all valuations are speculative models created by the community. The actual value will be determined by the market price of $KAITO at the time of the airdrop and when you choose to sell. The models provide a range of possibilities, not a guarantee.
What is the difference between Yap points and the $KAITO token?
Yap points are an off-chain, proprietary metric used to measure user contribution during the pre-launch phase. They will be converted into $KAITO tokens based on a predetermined formula at the TGE.
What risks are involved in pursuing airdrops?
Risks include the potential financial cost of buying NFTs, investing time that may not yield a return, market volatility affecting the final token value, and the inherent uncertainty of any new crypto project. 👉 Get advanced methods for managing airdrop risks.
Conclusion
The Kaito airdrop has ignited significant excitement by combining AI, search, and Web3 incentives. While valuation models provide a framework for understanding potential returns—from a conservative $13 per Yap to a highly speculative $131—the final outcome remains uncertain. The actual value will be a function of market forces, project execution, and broader crypto sentiment. As with any emerging technology, participants should carefully weigh the potential rewards against the risks involved.