The Rise and Fall of Labubu Toy Craze and Its Namesake Crypto Assets

The manufacturer of Labubu toys has recently seen its stock price soar, rising more than 200%, with a market capitalization exceeding 350 billion HKD. The company has over 500 stores in more than 30 countries and regions worldwide, with overseas business revenue accounting for more than 38%. However, the cryptocurrency LABUBU, which shares the same name, has experienced a significant decline, with its market capitalization falling below 28 million USD and a 24-hour drop of 20.4%.

!7377605

The Origin and Development of Labubu

Labubu is a uniquely shaped sprite toy with a round, fluffy body, big eyes, pointed ears, and nine sharp teeth, presenting a playful yet slightly fierce image. This character was designed by artist Long Jia-sheng, inspired by Norse folklore and mythology.

!7377606

Labubu made its debut in 2015 and gained widespread attention after collaborating with a toy company in 2019. In the first half of 2024, the sales of related product series reached 6.3 billion RMB. In April 2025, the third generation of Labubu products sparked a purchasing frenzy in multiple countries. In May of the same year, the cryptocurrency with the same name, LABUBU, was launched, but it failed to maintain its popularity. In June, a Labubu artwork was sold for 1.08 million RMB, demonstrating its collectible value.

!7377657

The Reasons for the Labubu Craze

1. Unique sales model: Using a blind box format to increase the excitement and uncertainty of purchases, driving up the secondary market prices of popular styles.

2. Excellent cultural and creative IP: crossing cultural barriers and favored by Asian and Western stars.

3. Global Consumer Goods: Proper product innovation and promotion strategies, along with China's complete industrial chain support.

!7377641

!7377642

The Harsh Reality of the Crypto Assets Market

Despite the popularity of Labubu toys, the eponymous crypto asset LABUBU cannot escape the fate of a sharp decline. This phenomenon is not an isolated case; other crypto assets related to physical toys have also experienced similar fates.

!7377626

For example, the Pudgy Penguins NFT project has successfully extended its IP into the physical toy market, achieving considerable sales, but its encryption asset PENGU has still dropped by 78% within six months. Similarly, the once highly sought-after Bored Ape Yacht Club (BAYC) and CryptoPunks NFT projects have also significantly declined from their peaks.

!7377630

These cases indicate that even with physical products to support them, Crypto Assets that rely purely on speculation ultimately struggle to maintain their value. When market enthusiasm wanes, cryptocurrencies lacking practical application scenarios and technical support often face the fate of a price crash.

The success of Labubu toys and the failure of its Crypto Assets once again confirm the fragility of speculative assets. Although physical products may continue to be popular, digital assets lacking substantial value will eventually revert to rationality. This phenomenon reflects the speculative nature of the Crypto Assets market and the importance of long-term value creation.

!7377639