The Labubu Craze and the Fluctuations of the Crypto Market

Labubu is a popular plush toy of a sprite character, attracting many consumers with its unique appearance. This character has a round body, big eyes, pointy ears, and nine sharp teeth, creating a playful and cute image.

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The creator of Labubu is Long Jiasheng, an artist born in Hong Kong and raised in the Netherlands. His inspiration comes from Nordic folklore and mythology, and he originally sketched the images of Labubu and his companions with a fountain pen. Labubu made its debut in 2015, but it only truly gained popularity after collaborating with a toy company in 2019.

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In the first half of 2024, the series of products under Labubu generated sales of 6.3 billion RMB. In April 2025, the third generation of Labubu products sparked a buying frenzy in multiple countries around the world. In May of the same year, a cryptocurrency named after Labubu was launched, but it soon faced the fate of a market value decline.

The success of Labubu can be attributed to several reasons. First, its adoption of a blind box sales model increases the excitement and uncertainty of purchasing. Second, Labubu is a cross-cultural global consumer product that appeals to both Asian and Western consumers. In addition, China's well-developed industrial chain and mature industrial ecosystem also provide support for its success.

However, the cryptocurrency related to Labubu has been unable to escape the fate of a sharp decline. This phenomenon is not uncommon in the crypto market, where even tokens associated with physical toys or well-known IPs often face similar fates. For example, Pudgy Penguins achieved good sales results after launching physical toys, but the prices of its NFTs and tokens still saw a significant drop.

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Similar situations have occurred with other well-known NFT projects. Bored Ape (BAYC) NFTs have dropped from a high of 153.7 ETH in May 2022 to around 11.55 ETH now. CryptoPunks have also fallen from a peak of over 125 ETH in 2021 to around 41 ETH currently.

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These cases indicate that even encryption assets supported by physical products or possessing strong IP are difficult to avoid the significant impact of market fluctuations. For tokens that rely solely on hype and speculation, the risk of price collapse is even more unavoidable.

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Overall, Labubu, as a successful toy IP, demonstrates its strong appeal in the physical market. However, the related encryption assets struggle to escape their speculative nature, ultimately facing the fate of a significant price decline. This reaffirms the high-risk characteristics of the crypto market and reminds investors to approach such highly speculative assets with caution.

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