The Rise and Fall of Labubu Toy Craze and Associated Tokens

The Labubu toy series launched by Pop Mart has created a frenzy in 2024, with the company's stock price soaring over 200% and its market capitalization surpassing HKD 350 billion. By the end of 2023, the company had 401 stores in mainland China and 130 stores in Hong Kong, Macau, Taiwan, and overseas, with operations spanning over 30 countries and regions, and international revenue accounting for more than 38%. However, the associated token LABUBU has failed to maintain its popularity, with its market capitalization currently falling 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 uniquely shaped sprite character toy, characterized by its round, fluffy body, big eyes, pointy ears, and a mischievous smile featuring nine sharp teeth. This character was designed by artist Long Jiaseng, who was born in Hong Kong and raised in the Netherlands, inspired by Nordic folklore and mythology.

Labubu made its debut in 2015 and quickly rose to fame after collaborating with Pop Mart in 2019. In the first half of 2024, the "The Monsters" series, to which Labubu belongs, generated 6.3 billion RMB in sales for Pop Mart. In April 2025, the third generation of Labubu's vinyl plush products sparked a buying frenzy in multiple locations worldwide.

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Reasons for the Labubu Craze

1. Blind Box Sales Model: This sales method, full of surprises and uncertainties, stimulates consumers' desire to purchase and also drives up prices in the secondary market.

2. Excellent Cultural IP: Labubu successfully crosses cultural boundaries and is loved by consumers in Asia and the West.

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

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The Rise and Fall of Token LABUBU

Despite the popularity of Labubu's physical toys, the eponymous token LABUBU has not escaped the fate of a price crash. This phenomenon is not uncommon in the cryptocurrency market, with similar cases including projects like Pudgy Penguins, BAYC, and CryptoPunks.

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Taking the Fat Penguin as an example, although its physical toy sales are considerable, the prices of its NFTs and Tokens have still seen a significant decline. Pure digital asset projects like Bored Apes and CryptoPunks have also gone through a process from peak to trough.

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These cases indicate that even with physical products to support them, token projects that rely solely on hype often struggle to maintain long-term value. The price trend of LABUBU Token reflects the speculative nature of the cryptocurrency market and the reality that token projects lacking practical application scenarios find it difficult to sustain.

Although the physical toy industry may continue to thrive, token projects associated with it are likely to face a price collapse after a market cooldown if they lack substantial value support. This phenomenon once again confirms the characteristic of the cryptocurrency market of being "born out of speculation and dying out due to bubble bursts."

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