The Rise and Fall of Labubu Toys and Its Eponymous Meme Coin

In 2024, the stock price of Labubu toy manufacturer skyrocketed by 10 times, with an annual increase of over 200%, and its market value surpassed 350 billion HKD. As of the end of last year, the company had 401 stores in mainland China and 130 stores in Hong Kong, Macau, Taiwan, and overseas, with operations in more than 30 countries and regions, and overseas revenue accounting for over 38%. However, the associated Meme coin LABUBU has failed to maintain this momentum, with its current market value dropping to 27.89 million USD and a 24-hour decline of 20.4%.

!7377605

The Origin and Development of Labubu

Labubu is a uniquely shaped sprite toy characterized by its round, fluffy body, big eyes, pointy ears, and a cheeky smile with nine sharp teeth. This character was designed by artist Long Jia Sheng, who was born in Hong Kong and raised in the Netherlands, inspired by Nordic folklore and mythology.

Labubu made its debut in 2015 and gained widespread attention after collaborating with a well-known toy company in 2019. In the first half of 2024, the "The Monsters" series to which Labubu belongs generated sales of 6.3 billion RMB. In April 2025, the third generation of Labubu's vinyl plush products sparked a buying frenzy in multiple countries.

!7377606

In May of the same year, a meme coin named LABUBU was launched. Although it briefly sparked speculation, it ultimately failed to sustain growth. In June, at an auction for Labubu artworks, a humanoid Labubu was sold for 1.08 million yuan, with a total transaction amount reaching 3.73 million yuan.

!7377657

The Reason for Labubu's Popularity

1. Innovative Sales Model: Adopting a blind box format to increase the purchasing stimulation and uncertainty, attracting collectors to repurchase.

2. Excellent cultural IP: Crosses cultural boundaries and is popular in both Asia and the West.

3. Industrial Chain Advantage: China's complete industrial chain and mature ecosystem provide support for it.

!7377641

!7377642

Meme coin cannot escape the fate of plummeting

Despite LABUBU leveraging the popularity of physical toys, it still could not avoid the price fluctuations commonly faced by Meme coins. A similar case is Pudgy Penguins, whose NFTs and physical toys were once very popular, but the associated Meme coin PENGU still experienced a significant decline.

!7377626

Well-known NFT projects like Bored Ape Yacht Club (BAYC) and CryptoPunks have also experienced similar price declines. These cases indicate that, even with physical products supporting them or being limited to digital assets, Meme coins and related NFT projects often struggle to maintain high prices after a brief boom.

!7377630

The rapid rise and fall of LABUBU's price reflects its highly speculative nature and lack of practical application. Even though the popularity of physical Labubu toys remains strong, virtual assets without substantial value support will ultimately face a return to value. This phenomenon highlights the essential characteristic of Meme coins, which are "born from speculation and perish from the bursting of bubbles."

!7377639