Behind the Labubu Craze: The Rise and Fall from Mystery Box Toys to Crypto Assets

The Labubu toy series under Pop Mart has sparked a craze in 2024, with the company's stock price soaring over 200% and its market value exceeding 350 billion HKD. As of the end of last year, the company had 401 stores in mainland China and a total of 130 stores in overseas regions including Hong Kong, Macau, and Taiwan, with operations in over 30 countries and regions, and overseas revenue accounting for more than 38%. However, the related crypto asset LABUBU has failed to continue this trend, with its market value now dropping to 27.89 million USD and a 24-hour decline of as much as 20.4%.

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The Origin and Development of Labubu

Labubu is a sprite character toy designed by artist Long Jiasheng, attracting numerous fans with its unique appearance features. This character originates from Long Jiasheng's story series "The Monsters," inspired by Nordic folklore and mythology.

Labubu made its debut in 2015, but it truly rose to fame after collaborating with Pop Mart in 2019. In the first half of 2024, the "The Monsters" series generated 6.3 billion RMB in sales. In April 2025, the third generation of Labubu vinyl plush products sparked a buying frenzy in multiple countries worldwide.

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Reasons for the Labubu Craze

1. Innovative Sales Model: Pop Mart adopts a mystery box sales approach, increasing the excitement and uncertainty of purchases, attracting consumers to repurchase to obtain rare styles.

2. Excellent Cultural IP: Labubu successfully crosses cultural barriers and is welcomed by both Asian culture and Western pop culture.

3. Industry Chain Support: China's well-developed industrial chain and mature industrial ecosystem provide a solid foundation for Labubu's success.

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Reflection on the Crypto Assets Market

Despite the great success of Labubu toys, its eponymous Crypto Assets LABUBU has not escaped the market fluctuations. This phenomenon is not uncommon in the realm of Crypto Assets, with similar examples including Pudgy Penguins and Bored Ape series.

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Pudgy Penguins has achieved good results in both the NFT and physical toy markets, but its cryptocurrency PENGU is still experiencing a severe decline. Similarly, well-known NFT projects like Bored Apes and CryptoPunks have also gone through a process from peak to trough.

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These cases indicate that even with physical products backing them, the speculative nature of the Crypto Assets market remains difficult to change. When market enthusiasm wanes, tokens lacking practical application value often struggle to maintain high prices.

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Conclusion

Labubu's success story showcases the power of excellent IP and innovative marketing strategies. However, the performance of the related Crypto Assets also reminds us that in a highly speculative market, long-term value is the true support. For investors, distinguishing between short-term speculation and long-term value is crucial, and for project teams, how to truly transform IP value into a sustainable economic model remains a thought-provoking issue.

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