Citadel Securities: token prices down ~50% in six months, frontier lab margins getting crushed
GaryMarcus · x · 2026-10-29
Frank Flight, head of macro strategy at Citadel Securities, argues 'Tokenomics 2.0' is here: consumption-weighted token prices fell 50% in six months and average frontier token prices dropped 62%, driven by cheaper open-weight models and price cuts. Open-model competition will pressure frontier lab margins, but accelerating token volume shows inference demand is still booming — 'low-cost carriers are eating the frontier labs alive.'
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