The Connection Between Labubu Craze and the Crypto Market

The Labubu toy series under Pop Mart is expected to experience explosive growth in 2024, with the company's stock price rising over 200% and market capitalization exceeding HKD 350 billion. As of the end of last year, Pop Mart had 531 stores globally, spread across more than 30 countries and regions, with overseas business revenue accounting for over 38%. However, the related cryptocurrency LABUBU has failed to maintain this momentum, 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 sprite character toy designed by artist Long Jiasheng, featuring a round body, big eyes, and pointy ears. Long Jiasheng's inspiration comes from Nordic folklore, and the initial design sketches were drawn with a fountain pen. 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 belonging to Labubu generated sales of 6.3 billion RMB. In April 2025, the third generation of Labubu products sparked a buying frenzy in several countries. In May of the same year, LABUBU cryptocurrency was launched, but it failed to maintain its popularity. In June, a Labubu art auction had a total transaction amount of 3.73 million RMB, with one piece selling for 1.08 million RMB.

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Reasons for Labubu's Popularity

1. Blind Box Sales Model: Increases purchasing stimulation and uncertainty, driving repeat purchase behavior.

2. Excellent Cultural and Creative IP: Bridging cultural barriers, favored by both Asian cultures and Western celebrities.

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

4. Global Strategy: Successfully create a cross-cultural global consumer goods image.

5. Balance of Innovation and Accumulation: There is both patient accumulation and innovative breakthroughs in product creation and promotion.

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Physical toy-related encryption assets cannot escape the downward trend

Despite LABUBU's popularity with physical toys, it has still not been able to avoid the general downward trend in the crypto market. A similar case is the Pudgy Penguins project, which, although successful in physical toy sales, has seen a significant drop in the prices of its NFTs and cryptocurrencies.

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Other well-known NFT projects such as Bored Ape Yacht Club (BAYC) and CryptoPunks have also experienced similar price declines. Even with celebrity and large company involvement, the value of these digital assets remains difficult to sustain.

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Conclusion

The success of Labubu's physical toys does not guarantee the long-term value of its associated encryption assets. Cryptocurrencies that lack practical use and technical support, even if temporarily popular, will ultimately struggle to escape the fate of significant price volatility. This once again proves that speculative assets without actual value support will eventually face a return to value after the market cools down.

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