Labubu: From the Mystery Box Craze to the Rise and Fall of Digital Money

Pop Mart's stock price surged in 2024, increasing by over 200%, with a market capitalization exceeding HKD 350 billion. As of the end of last year, the company had 401 stores in mainland China and 130 stores in Hong Kong, Macau, Taiwan, and overseas, with operations in more than 30 countries and regions. Overseas revenue accounted for more than 38%. However, the related digital money LABUBU failed to maintain its momentum, with a market capitalization 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 toy, featuring a round, fluffy body, big eyes, pointy ears, and nine sharp teeth, presenting a playful yet slightly fierce image. This character was designed 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 gained wider attention after collaborating with Pop Mart 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 Labubu products sparked a buying frenzy in multiple locations worldwide.

In May of the same year, the Digital Money LABUBU was launched, which caused a stir for a time but failed to maintain prosperity. In June, a Labubu art auction had a total transaction amount of 3.73 million RMB, with one piece sold for 1.08 million.

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Reasons for Labubu's Popularity

1. Mystery box sales model: Increases purchasing stimulation and uncertainty, encouraging consumers to make repeat purchases and driving up secondary market prices.

2. Excellent cultural and creative IP: crossing cultural barriers, while being loved by both Asian culture and Western stars.

3. Product innovation and promotion: a combination of patient accumulation and breakthrough innovation.

4. Industry Chain Support: China's完善的产业链和成熟的生态系统为其发展提供基础。

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The Fate of Digital Money Related to Physical Toys

Digital money related to physical toys, such as LABUBU, despite having physical products to support them, still cannot escape the fate of a significant decline. Similar cases include Pudgy Penguins, BAYC, and CryptoPunks.

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The chubby penguin exceeded sales of 750,000 and generated revenue of 10 million dollars after launching physical toys. However, its digital money PENGU has dropped from a high of 0.0428 dollars in January 2025 to the current 0.009369 dollars, a decline of 78%.

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The Bored Ape NFT has fallen from a high of 153.7 ETH in May 2022 to the current 11.55 ETH. CryptoPunks has also dropped from around 125 ETH in 2021 to the current 41 ETH.

These cases indicate that even with physical products supporting them or being limited to the realm of digital assets, such highly speculative digital money struggles to maintain long-term value. LABUBU, as a digital coin that merely rides the wave of physical toy popularity, experiences significant price fluctuations that reflect its high speculation and lack of practical application value. When the market frenzy subsides, the false prosperity without actual value support will eventually collapse, which is the common fate of many similar digital coins.

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