Labubu Toy Craze and Crypto Market Fluctuation

In 2024, the stock price of Labubu toy manufacturer skyrocketed by ten times, with an annual increase of over 200%, and the company's market value exceeded HKD 350 billion. By the end of last year, the company had 401 stores in mainland China, 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 associated cryptocurrency LABUBU faced a severe blow, with its market value dropping below USD 28 million and a 24-hour decline of 20.4%.

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The Origin and Development of Labubu

Labubu is a unique elf character toy, known for its round, fluffy body, big eyes, pointy ears, and a mischievous smile with nine sharp teeth. This character was created by artist Long Jia Sheng, who was born in Hong Kong and grew up in the Netherlands, inspired by Nordic folklore.

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Labubu made its debut in 2015 and quickly gained popularity after collaborating with a toy company in 2019. In the first half of 2024, the sales of related series products reached 6.3 billion RMB. In April 2025, the third generation of Labubu products triggered a purchasing frenzy in multiple locations globally. In May of the same year, LABUBU cryptocurrency was launched, but it failed to sustain its prosperity. In June, an auction of Labubu artworks totaled 3.73 million RMB.

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The Reason Why Labubu Became Popular

1. Innovative Sales Model: Adopting a blind box format to increase purchasing excitement and uncertainty, driving repeat consumption.

2. Excellent Cultural IP: Crosses cultural boundaries and is jointly loved by both Asian and Western cultures.

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

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Fluctuation of the crypto market

Despite the popularity of Labubu's physical toys, the related cryptocurrency LABUBU has not been spared from market fluctuations. A similar case is Pudgy Penguins, whose NFTs and physical toys were once all the rage, but the related cryptocurrency PENGU still faced a significant decline.

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Other well-known NFT projects such as Bored Apes and CryptoPunks have also experienced similar fates. Bored Apes dropped from a peak of 153.7ETH to 11.55ETH, while CryptoPunks fell from a high of 125ETH to 41ETH.

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These cases indicate that even with tangible products supporting them, purely speculative and hype-driven encryption assets often struggle to maintain long-term value. After the market frenzy subsides, the prices of virtual assets lacking practical application value tend to plummet significantly. This phenomenon reflects the speculative nature of the crypto market and the inevitability of its value bubble bursting.