Labubu: From Toy Craze to Cryptocurrency Fluctuation

Labubu is a popular plush toy character that has attracted many fans with its playful yet slightly fierce appearance. This character features a round and fluffy body, wide-open big eyes, pointy ears, and a mischievous smile made up of nine sharp teeth.

Labubu was designed by artist Long Jia-sheng, who was born in Hong Kong and grew up in the Netherlands. Inspired by Nordic folklore and mythology, Long Jia-sheng created the story series "The Monsters." Labubu made its debut in 2015 and gained wider attention after collaborating with a toy company in 2019.

In the first half of 2024, the "The Monsters" series generated sales of 6.3 billion RMB. In April 2025, the third generation of vinyl plush products sparked a buying frenzy in several countries. In May of the same year, a cryptocurrency of the same name was launched, but ultimately could not escape the fate of price fluctuation.

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Reasons for the Labubu Craze

1. Unique sales model: Adopting a blind box format increases the purchasing excitement and uncertainty, encouraging consumers to make repeat purchases in pursuit of rare styles.

2. Excellent cultural and creative IP: crossing cultural barriers, while being embraced by Asian culture and loved by Western celebrities.

3. Product innovation and promotion: a combination of patient accumulation and innovative breakthroughs.

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

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Fluctuation of the encryption market

Despite the enduring popularity of Labubu physical toys, its namesake encryption currency cannot escape the fate of plummeting. This phenomenon is not unique in the encryption currency market.

Taking Fat Penguin as an example, its NFT, encryption currency, and physical toys once became very popular. In September 2023, Fat Penguin toys were launched in major retail stores in the United States, expanding its brand influence. However, the prices of its NFT and encryption currency have still seen a significant decline.

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Well-known digital collectible projects like Bored Apes and CryptoPunks have also experienced similar price Fluctuation. Even though they once attracted high-priced purchases from celebrities and large companies, the value of these projects has still significantly shrunk in the short term.

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This phenomenon reflects the high fluctuation characteristics of the encryption asset market. Even with physical products to support it, virtual assets that purely rely on speculation often struggle to maintain long-term value. After the market frenzy subsides, asset prices that lack practical applications and value support tend to fall back to more reasonable levels.

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The case of Labubu reminds investors to remain rational when participating in the cryptocurrency market, recognizing its high-risk characteristics and avoiding blind following. At the same time, it also highlights the complex relationship between the real economy and the virtual economy, as well as the market's long-term pursuit of real value.

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