The Rise and Fall of Labubu: From Physical Toys to Virtual Coins

The Labubu toy series under Pop Mart has sparked a craze in 2024, with the company's stock price soaring by over 200%, and its market value 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, spread across more than 30 countries and regions, with overseas revenue accounting for over 38%. However, the associated virtual coin LABUBU has failed to maintain this momentum, with its market value currently plummeting to USD 27.89 million, experiencing a 24-hour decline of 20.4%.

!7377605

The Origin and Development of Labubu

Labubu is a uniquely shaped sprite character toy with a round, fluffy body, large eyes, pointed ears, and nine sharp teeth, presenting a charming yet slightly fierce image. This character was designed by artist Long Jia-sheng, who was born in Hong Kong and raised in the Netherlands, inspired by Nordic folklore and mythology.

Labubu first appeared in 2015 and gained widespread attention after collaborating with Pop Mart in 2019. In the first half of 2024, the "The Monsters" series belonging to Labubu generated a sales revenue of 6.3 billion RMB for the company. In April 2025, the third generation of Labubu vinyl plush products sparked a buying frenzy in multiple locations worldwide. In May of the same year, LABUBU virtual coin was launched, but it quickly lost market heat.

!7377606

The Reasons Labubu Became Popular

The success of Labubu is mainly attributed to two factors:

1. Blind box sales model: This sales method, full of uncertainty, increases the excitement of purchasing and encourages consumers to buy repeatedly to obtain rare styles.

2. Excellent cultural and creative IP: Labubu successfully transcends cultural barriers while being loved by both Asian culture and Western celebrities.

In addition, Labubu's success is also attributed to China's complete industrial chain and mature industrial ecosystem.

!7377657

Fluctuations in the Virtual Coin Market

Although Labubu's physical toys have achieved great success, the associated virtual coin LABUBU has struggled to maintain a high price. This situation is not unique; other similar projects like the Fat Penguin ( Pudgy Penguins ) have also experienced a similar fate.

!7377641

The Fat Penguin project quickly gained popularity after its launch in 2021, not only issuing NFTs and virtual coins but also launching physical toys. However, its NFT price has dropped from a high of 34.8 ETH to the current 8.9 ETH, and the virtual coin PENGU has fallen from its peak of $0.0428 to $0.009369, a decline of 78%.

!7377642

Similarly, once highly sought-after NFT projects like Bored Ape (BAYC) and CryptoPunks have also experienced significant price drops. Bored Apes fell from a high of 153.7 ETH to 11.55 ETH, while CryptoPunks dropped from 125 ETH to 41 ETH.

!7377626

!7377630

These cases indicate that even with physical products backing them, the associated virtual assets are still difficult to maintain high value over the long term. The plummet of LABUBU虚拟币 reflects the high speculation and instability of the virtual currency market. When market enthusiasm wanes, assets lacking practical application value often cannot escape the fate of price collapse.

!7377639