Labubu: The ups and downs from physical toys to virtual coin

Labubu is a unique plush toy of a sprite character, attracting many fans with its playful yet slightly fierce appearance. This round, fluffy little sprite has wide-open big eyes, pointy ears, and a mischievous smile made up of nine sharp teeth, making it a favorite among many collectors.

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The creator of Labubu is Long Jiaseng, an artist born in Hong Kong and raised in the Netherlands. His inspiration comes from Nordic folklore and mythology, and he initially sketched this cute and unique character with a pen. Labubu made its debut in 2015, but it truly gained popularity after collaborating with a well-known toy company in 2019.

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In 2024, the "The Monsters" series owned by Labubu achieved an astonishing sales figure of 6.3 billion RMB. In April 2025, the third generation of Labubu's PVC plush products sparked a buying frenzy in multiple countries, even leading to instances of high-priced reselling. In May of the same year, a virtual currency named after Labubu was launched. Although it stirred up discussions in the short term, it ultimately could not escape the fate of price decline.

Labubu's popularity is closely linked to its unique sales approach. The use of blind box models increases the excitement and uncertainty of purchases, prompting collectors to repeatedly buy in pursuit of rare editions. An experienced collector stated that the process of shaking the blind box to guess its contents is full of fun and challenge.

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As an excellent cultural and creative IP, Labubu has successfully crossed cultural barriers, gaining recognition from Asian culture and affection from Western celebrities. Its success is attributed to its cross-cultural characteristics, the patience and innovation of the creative team, as well as China's complete industrial chain and mature industrial ecosystem.

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However, the virtual currency related to Labubu has failed to continue the glory of the physical toys. Similar cases include the Fat Penguin series, which saw great success with its physical toys in Walmart stores in the United States, but the prices of the related digital assets still fell significantly. Pure digital assets like Bored Apes and CryptoPunks have also experienced a process from peak to trough.

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These phenomena reflect the high volatility and speculative nature of the virtual currency market. Even with backing from popular physical products, digital assets lacking practical application value still struggle to maintain long-term stability. When market enthusiasm wanes, bubbles without substantial support will eventually burst, which may be the common fate faced by many similar digital assets.