Labubu is sweeping the globe, but the similarly named Meme coin cannot escape the fate of a big dump.

Labubu is a sprite character toy designed by artist Long Jiasheng, which has sparked a global craze with its unique shape and blind box sales model. This toy features a round and fluffy body, wide-open big eyes, pointy ears, and a mischievous smile made up of nine sharp teeth, making it very popular among consumers.

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Labubu's success is closely tied to the business strategy of its parent company. By the end of 2023, the company had 401 stores in mainland China, 130 stores in Hong Kong, Macau, Taiwan, and overseas, with operations covering more than 30 countries and regions. The overseas revenue accounted for over 38%, demonstrating strong performance in the international market.

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The popularity of Labubu is mainly attributed to two factors: first, the use of a blind box sales model, which increases the excitement and uncertainty of purchasing; second, as an excellent cultural IP, it has successfully crossed cultural barriers and gained recognition globally. A seasoned blind box collector stated that the element of surprise in blind boxes is a major attraction, and he will shake the blind box to look for special edition "chaser".

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However, the Meme coin LABUBU related to the Labubu physical toys cannot escape the fate of a big dump. Although LABUBU once enjoyed glory, its market value has now fallen below $28 million, with a 24-hour fall of 20.4%. This situation is not an isolated case; similar projects like Pudgy Penguins, BAYC, and CryptoPunks have all experienced a process of decline from their peak.

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Taking the Fat Penguin as an example, its NFT once set a record high of 34.8ETH, but now it is only 8.9ETH. Its Meme coin PENGU also fell from a peak of 0.0428 dollars to 0.009369 dollars, a decline of 78%. Bored Apes and CryptoPunks have also experienced significant falls, dropping from highs of 153.7ETH and 125ETH to 11.55ETH and 41ETH respectively.

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These cases indicate that even projects supported by physical products or highly sought after in the digital asset space cannot avoid a price drop after the market's enthusiasm wanes. For the Meme coin LABUBU, which relies solely on the popularity of physical toys, its big dump was to be expected.

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The rapid rise and fall of LABUBU's price reflects its highly speculative nature and lack of practical application value. Although the physical Labubu toy once swept the globe, when the market craze subsides, the false prosperity lacking substantial value support will inevitably collapse. This phenomenon is a true portrayal of the essence of Meme coins, which "are born out of speculation and perish due to the bursting of value bubbles."

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