Labubu: From Viral Toy to the Rise and Fall of Crypto Assets

The Labubu toy series under Pop Mart sparked a craze in 2024, with the company's stock price soaring over 200%, and its market capitalization surpassing HKD 350 billion. By the end of 2023, Pop Mart 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 related Crypto Assets LABUBU has failed to maintain long-term growth, with its market capitalization currently dropping to USD 27.89 million and a 24-hour decline of 20.4%.

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The Origin and Development of Labubu

Labubu is a plush toy themed around spirits, with a round and cute appearance that also carries a hint of fierceness. It has a chubby body, big eyes, pointy ears, and nine sharp teeth, which together create a unique smile.

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 debuted 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, Pop Mart launched the third generation of Labubu PVC plush products, triggering a buying frenzy in multiple countries. In May of the same year, the cryptocurrency LABUBU based on Labubu was introduced, attracting market attention. In June, an auction of Labubu artworks had a total transaction amount of 3.73 million yuan, with one piece selling for 1.08 million yuan.

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Reasons for Labubu's Popularity

1. Unique sales model: Labubu adopts a blind box sales method, increasing the excitement and uncertainty of purchases, attracting consumers to buy repeatedly in order to obtain rare styles.

2. High-quality cultural and creative IP: Labubu has successfully crossed cultural boundaries, gaining popularity in both Asia and the West, becoming a global consumer product.

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

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Reflection on the Crypto Assets Market

Despite the huge success of Labubu's physical toys, the related crypto asset LABUBU has struggled to maintain long-term growth. This phenomenon is not unique in the crypto asset market, with similar cases including Pudgy Penguins, BAYC, and CryptoPunks.

Pudgy Penguins has achieved certain success in both the NFT and physical toy sectors, with its Pudgy Toy series generating sales of 10 million dollars in less than a year. However, its NFT price has dropped from a peak of 34.8 ETH to the current 8.9 ETH, and the related crypto asset PENGU has also fallen from a high of 0.0428 dollars to 0.009369 dollars.

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Similarly, the once highly sought-after BAYC and CryptoPunks NFTs have also experienced significant price drops. BAYC has fallen from a peak of 153.7ETH to the current 11.55ETH, while CryptoPunks has dropped from around 125ETH to its current 41ETH.

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These cases illustrate that even with tangible products backing or success in the digital asset space, related Crypto Assets and NFT projects still struggle to avoid significant volatility and value decline. This reflects the highly speculative nature of the Crypto Assets market and the lack of long-term value support.

When the market frenzy subsides, projects lacking practical applications and a value foundation often struggle to maintain their prosperity. This also reminds investors to exercise caution when participating in related investments, focusing on the long-term value and practical application prospects of the project, rather than merely following short-term market trends.

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