The Labubu Craze and the Fluctuations of the Virtual Money Market

The Labubu toy series under Pop Mart has sparked a craze in 2024, with the company's stock price soaring and its market value exceeding HKD 350 billion. As a result, the founder has become the new richest person in Henan. By 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 over 30 countries and regions, and overseas revenue accounting for more than 38%. However, the related virtual money LABUBU has experienced a significant decline, with its market value dropping below USD 28 million and a 24-hour drop of 20.4%.

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The Origin and Development of Labubu

Labubu is a uniquely shaped sprite character toy, featuring a rounded fuzzy body, big eyes, pointy ears, and nine sharp teeth, presenting a playful yet slightly fierce image. This character is designed by the artist Long Jiaseng, who was born in Hong Kong and grew up in the Netherlands, inspired by Nordic folklore and mythology.

Labubu made its debut in 2015 and gained wider attention after collaborating with Pop Mart 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 products triggered a buying frenzy in multiple locations worldwide.

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In May of the same year, the Virtual Money LABUBU was launched. Although it once caused a stir, it ultimately could not escape the fate of a price decline. In June, a Labubu art auction had a total transaction amount of 3.73 million yuan, with one humanoid Labubu sold for 1.08 million yuan.

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Reasons for the Labubu Craze

1. Unique Sales Model: Adopts blind box sales to increase the excitement and uncertainty of purchases, driving up the secondary market prices of popular styles.

2. Excellent Cultural IP: Crosses cultural barriers and is favored by Asian and Western stars.

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

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The Volatility of the Virtual Money Market

Although Labubu's physical toys have achieved great success, the associated virtual money LABUBU has unfortunately faced a plummeting fate. This phenomenon is not uncommon in the virtual money market, with similar projects including Pudgy Penguins, BAYC, and CryptoPunks.

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The fat penguin has also launched physical toys after issuing NFTs and Virtual Money. Although the physical toys are selling well, the prices of its NFTs and Virtual Money have still dropped significantly. Pure digital asset projects like Bored Apes and CryptoPunks have also experienced a process from peak to trough.

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These cases indicate that even with tangible products supporting them, the associated virtual assets may still face significant fluctuations. For virtual money that relies solely on the popularity of tangible products, this risk is even more pronounced.

Conclusion

The rapid rise and fall of LABUBU Virtual Money reflects its high speculation and lack of practical application. Although Bubble Mart's Labubu toys have achieved commercial success, virtual assets that lack substantial value support often struggle to maintain high prices when market enthusiasm wanes. This phenomenon once again confirms the essence of speculative virtual money: "born from hype, doomed to die when the bubble bursts."

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