The Rise and Fall of Labubu: From Physical Toys to Digital Assets

The Labubu toys under Pop Mart have recently sparked a wave of enthusiasm. The company's stock price soared in 2024, with an increase of over 200% this year, and its market value has surpassed HKD 350 billion. By the end of last year, the company had 401 stores in mainland China and 130 overseas stores, covering more than 30 countries and regions, with overseas revenue accounting for over 38%. However, the associated cryptocurrency LABUBU has experienced a significant decline, currently with a market value of only USD 27.89 million, and a 24-hour drop of 20.4%.

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The Origin and Development of Labubu

Labubu is a uniquely shaped elf toy designed by artist Long Jia Sheng, who was born in Hong Kong and raised in the Netherlands. This character originates from the story series "The Monsters" and is 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 a sales revenue of 6.3 billion RMB for Pop Mart. In 2025, Labubu-related products sparked a buying frenzy in many parts of the world, even leading to high-priced resale phenomena. In June of the same year, a Labubu art auction had a total transaction amount of 3.73 million RMB, with one piece selling for as much as 1.08 million RMB.

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The Reasons Why Labubu Became Popular

1. Blind Box Sales Model: This sales method, which is full of uncertainty, increases the excitement of purchasing and encourages consumers to buy repeatedly in order to obtain rare styles.

2. Excellent Cultural IP: Labubu has successfully crossed cultural barriers and is popular in both Asia and the West.

3. Industry Chain Support: China's well-developed industry chain and mature industrial ecosystem provide strong support for the production and promotion of Labubu.

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The volatility of the digital asset market

Although the popularity of Labubu physical toys remains strong, the related digital assets are facing severe challenges. The LABUBU cryptocurrency, despite initially rising due to the popularity of the physical toys, ultimately could not escape the fate of a sharp decline. This phenomenon is not uncommon in the digital asset market, as well-known projects such as Pudgy Penguins, BAYC, and CryptoPunks have all experienced similar significant price fluctuations.

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Taking the Fat Penguin as an example, its NFT once reached a peak price of 34.8 ETH, but now it is only 8.9 ETH. The related PENGU token has dropped from a high of 0.0428 USD to 0.009369 USD, a decrease of 78%. Bored Apes and CryptoPunks have also significantly fallen from their respective highs.

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Conclusion

The success of Labubu's physical toys stands in stark contrast to the volatility of its digital assets. This phenomenon reflects the high-risk characteristics of the digital asset market, particularly for projects that lack practical application value and primarily rely on speculation for support. Even with physical products backing it, the value of digital assets can still fluctuate significantly due to changes in market sentiment. This serves as a reminder for investors to remain cautious when participating in the digital asset market and to fully understand the risks involved.