Behind the Labubu Craze: The Rise and Fall from Toys to Digital Coins

The Labubu toy series under Pop Mart has sparked a craze in 2024, driving the company's stock price to surge tenfold, with a market capitalization exceeding HKD 350 billion. 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, covering more than 30 countries and regions. However, the associated cryptocurrency LABUBU has failed to maintain this momentum, with its market capitalization now falling below USD 28 million and a 24-hour decline of 20.4%.

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The Origin and Development of Labubu

Labubu is a plush toy of a sprite character designed by the artist Long Jiasheng, characterized by its round body, big eyes, and sharp teeth. Long Jiasheng's creative inspiration comes from Nordic folklore and mythology, originally designed with a pen.

Labubu made its debut in 2015 and gained wider attention after collaborating with Pop Mart in 2019. In the first half of 2024, its affiliated series "The Monsters" generated sales of 6.3 billion RMB. In April 2025, the third generation of vinyl plush products sparked a buying frenzy in multiple countries.

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Reasons for the Labubu Craze

1. Unique Sales Model: Blind box sales increase the excitement and uncertainty of purchasing, driving up the secondary market prices for popular styles.

2. Excellent Cultural IP: Labubu has successfully crossed cultural barriers and is loved by both Asian and Western consumers.

3. Industry Chain Support: China's complete industry chain and mature industry ecosystem provide a solid foundation for Labubu's success.

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Volatility of the Digital Currency Market

The digital currency LABUBU, related to Labubu figurines, once sparked a wave of speculation but ultimately could not escape the fate of a price decline. This phenomenon is not uncommon in the digital currency market, with similar cases including Pudgy Penguins and BAYC projects.

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Pudgy Penguins has achieved success in the physical toy market, with sales reaching $10 million, but its digital currency PENGU still experiences significant declines. Similarly, well-known NFT projects like Bored Apes and CryptoPunks have also gone through a process from peak to trough.

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Conclusion

The success of Labubu physical toys and the decline of their digital currency version reflect the significant differences between the physical economy and the virtual economy. While physical toys can create sustained value and demand, digital currencies that rely purely on speculation often struggle to maintain long-term value. This phenomenon reminds us to be cautious in investment and consumption decisions, focusing on long-term value rather than short-term speculation.