Labubu: From a Hot Toy to a Brief Encryption Craze

The Labubu toy series launched by Pop Mart triggered an investment frenzy in 2024, with the company's stock price soaring over 200%, and its market value exceeding HKD 350 billion. By the end of last year, the company had 401 stores in mainland China and 130 stores in over 30 countries and regions overseas, with overseas revenue accounting for more than 38%. However, the associated encryption currency LABUBU has failed to maintain long-term growth, and its market value has fallen to USD 27.89 million, with a 24-hour decline of 20.4%.

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The Origin and Development of Labubu

Labubu is a sprite character toy designed by the artist Long Jiasheng, characterized by its rounded plush shape, big eyes, pointed ears, and nine sharp teeth, presenting an image that is both cute and slightly fierce. This character originates from the story series "The Monsters" created by Long Jiasheng, inspired by Nordic folklore.

Labubu made its debut in 2015 and gained widespread attention after collaborating with Pop Mart in 2019. In the first half of 2024, the "The Monsters" series 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.

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In May of the same year, the similarly named encryption currency LABUBU was launched, but it failed to maintain its value in the long run. In June, a Labubu art auction had a total transaction amount of 3.73 million yuan, with one piece selling for 1.08 million yuan.

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The Reason Labubu Became Popular

1. Blind box sales model: Increases the excitement and uncertainty of purchases, driving up the prices in the secondary market.

2. Excellent cultural and creative IP: transcending cultural boundaries, popular in both Asia and the West.

3. Industrial Chain Advantage: China's complete industrial chain and mature industrial ecosystem provide a foundation for its success.

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The Reality of the Cryptocurrency Market

Although the Labubu physical toy has achieved great success, the associated cryptocurrency LABUBU has struggled to maintain growth. Similar situations have occurred with other crypto assets related to physical products, such as Pudgy Penguins and BAYC.

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Pudgy Penguins has achieved success in the physical toy market, with sales reaching $10 million, but its NFT and encryption prices have both seen a significant decline. Well-known NFT projects like BAYC and CryptoPunks have also experienced similar price crashes.

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These cases demonstrate that even with physical products backing them, the value of encryption assets still highly depends on market sentiment and speculative behavior. When market enthusiasm wanes, encryption assets that lack practical application value often struggle to maintain high prices.

The story of Labubu once again proves that in the cryptocurrency market, short-term hype and speculation do not guarantee long-term value growth. Investors should treat these high-risk, highly volatile assets with caution and focus on projects that have practical application value and long-term development potential.

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