The Rise and Fall of Labubu: From Toy Craze to Digital Bubble

Labubu, as a plush toy character, has sparked a global craze. Designed by artist Long Jiasheng, this character features a unique appearance: a round, fluffy body, wide-open big eyes, pointy ears, and a mischievous smile made up of nine sharp teeth.

!7377605

Labubu debuted in 2015 and gained wider attention after collaborating with a well-known toy company in 2019. In the first half of 2024, related product series generated an impressive sales revenue of 6.3 billion RMB. In April 2025, the third generation of PVC plush products sparked a buying frenzy in multiple countries. In June of the same year, a special edition Labubu was sold for 1.08 million RMB at an auction, highlighting its collectible value.

!7377606

Labubu's success is closely tied to its unique sales model. The use of blind boxes increases the excitement and uncertainty of purchases, attracting consumers to buy repeatedly in order to obtain rare styles. An experienced collector stated that this element of surprise is a major attraction, and he judges the contents by shaking the blind box.

As an outstanding cultural and creative IP, Labubu transcends cultural barriers and is loved by both Asian and Western stars. Its success is attributed to the combination of cross-cultural attributes, innovation and accumulation, as well as a完善的产业链支持.

!7377657

However, the digital assets related to Labubu's physical toys failed to continue their glory. The cryptocurrency of the same name launched in May 2025 briefly sparked speculation but quickly fell into a downward trend. This phenomenon is not an isolated case; similar projects like Fat Penguin and Bored Ape have also experienced a process of rising to the peak and then plummeting.

!7377641

Taking the Fat Penguin as an example, its NFT once reached a high price of 34.8 ETH, but has now fallen to 8.9 ETH. The related cryptocurrency PENGU has dropped from its peak of $0.0428 to $0.009369, a decline of 78%. Well-known NFT projects like Bored Apes and CryptoPunks have also not escaped this difficulty, with significant price declines.

!7377642

!7377626

!7377630

These cases indicate that even digital assets supported by physical products are difficult to withstand the impact of market sentiment fluctuations. Speculative assets lacking practical application scenarios and stable value support will ultimately face the fate of a bubble burst.

The success of Labubu's physical toys is certainly impressive, but the fluctuations of its related digital assets highlight the vulnerability of the speculative market. This phenomenon reminds us once again that when evaluating any investment opportunity, it is essential to carefully consider its long-term value and practical application prospects.

!7377639