The Rise and Fall of Labubu Craze and LABUBU Token

Recently, a plush toy named Labubu has sparked a global craze. This sprite character, designed by artist Long Jiasheng, has attracted numerous consumers with its unique appearance and the story behind it. However, the associated cryptocurrency has failed to maintain this enthusiasm and has instead fallen into a sharp decline in value.

The Rise of Labubu

Labubu is a round, fluffy sprite character with wide-open big eyes, pointy ears, and nine sharp teeth, forming a playful yet slightly fierce smile. This character originates from the story series "The Monsters" created by Long Jia Sheng, inspired by Nordic folklore and mythology.

After its debut in 2015, Labubu gained wider attention in 2019 when it collaborated with a toy company. In the first half of 2024, the "The Monsters" series generated sales of 6.3 billion RMB. In April 2025, the third generation of Labubu rubber plush products sparked a buying frenzy in multiple countries.

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The Reasons for Labubu's Popularity

The success of Labubu can be attributed to the following factors:

1. Unique sales model: using blind box sales, which increases the excitement and uncertainty of purchasing.

2. Excellent cultural and creative IP: Bridging cultural barriers, while being loved by both Asian and Western stars.

3. Global consumer goods: Product design and promotion take into account diverse cultural backgrounds.

4. Industry Chain Support: China's complete industrial chain and mature industrial ecosystem provide a strong backing for it.

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The Rise and Fall of LABUBU Token

With the rise of Labubu toys, a token named LABUBU was born on May 29, 2025. However, despite briefly sparking a hype, this token ultimately could not escape the fate of a value decline. As of now, the market capitalization of the LABUBU token has fallen below $28 million, with a 24-hour drop of 20.4%.

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This phenomenon is not an isolated case. Tokens related to physical toys, such as the Fat Penguin (PENGU), have also experienced a similar fate. After reaching an all-time high of $0.0428 in January 2025, PENGU fell to $0.009369 in just six months, a decline of 78%.

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The Implications of Token Value Decline

The rapid rise and fall in prices of LABUBU and other tokens reflects their highly speculative nature and lack of practical use. Although the related physical toys may have once become popular, when the market frenzy subsides, virtual assets lacking actual value support will ultimately face a collapse in value.

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This phenomenon is not limited to tokens related to physical toys; even well-known projects in the realm of pure digital assets, such as Bored Apes and CryptoPunks, cannot escape the fate of significant price declines. This highlights that in the cryptocurrency market, prosperity sustained solely by hype will ultimately collapse, and only projects with true long-term value can stand firm in the market.

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