Behind the Labubu Toy Craze: The Rise and Fall of Physical IP to Virtual Coin

In 2024, a toy character named Labubu sparked a market craze. This plush toy designed by artist Long Jiasheng quickly became a sought-after item among collectors due to its unique appearance and blind box sales method.

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The success of Labubu toys is closely related to the performance of the company behind it. In 2024, the company's stock price rose significantly, surpassing a market value of HKD 350 billion. The company has 401 stores in mainland China and 130 stores in more than 30 countries and regions overseas. As of the end of last year, overseas revenue accounted for more than 38%.

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The design inspiration for Labubu comes from Nordic folklore. It features a round, fluffy body, wide-open big eyes, pointed ears, and a mischievous smile made up of nine sharp teeth. This unique design makes it a cross-cultural global consumer product.

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In 2025, Labubu toys sparked a buying frenzy in multiple countries. In May of the same year, a virtual coin named Labubu was launched, attracting a large number of speculators' attention in a short period. However, the market value of this virtual coin plummeted significantly within just a few months, with a decline of over 20%.

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The success of Labubu toys is mainly attributed to two factors: its unique blind box sales model and excellent cultural creative IP. The blind box sales increase the excitement and uncertainty of purchases, while Labubu, as a cross-cultural IP, has gained wide recognition among consumers in Asia and the West.

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However, the virtual currencies related to Labubu's physical toys cannot escape the fate of a sharp decline. This phenomenon is not an isolated case, as similar situations have occurred with other well-known IPs. For example, the Pudgy Penguins and Bored Ape Yacht Club (BAYC) NFT projects, despite having been popular for a time, have seen their associated digital asset prices experience significant drops.

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This phenomenon reflects the high speculation and volatility of the virtual currency market. Even virtual currencies associated with successful physical products struggle to maintain long-term value. This serves as a reminder for investors to approach such high-risk assets with caution and not to confuse short-term speculation with long-term value.