Analysis of the Labubu Toy Craze and the Fate of Related Meme Coins

Pop Mart's stock price soared in 2024, with an increase of over 200%, and its market value surpassed HKD 350 billion. Its founder has thus become the newly minted richest person in Henan. By the end of last year, the company had 401 stores in mainland China and 130 stores in Hong Kong, Macau, Taiwan, and overseas, with business spanning over 30 countries and regions, and overseas revenue accounting for over 38%. However, the related Meme coin LABUBU has encountered a significant decline, with a market value dropping below USD 28 million and a 24-hour decline of 20.4%.

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The Origin and Development of Labubu

Labubu is a uniquely designed plush toy character that features a round body, big eyes, pointed ears, and a mischievous smile with nine sharp teeth. This character was designed by artist Long Jiasheng, inspired by Norse folklore and mythology. Labubu made its debut in 2015 and gained wider attention after collaborating with Pop Mart in 2019.

In the first half of 2024, the "The Monsters" series owned by Labubu generated sales of 6.3 billion RMB. In April 2025, the third generation of Labubu PVC plush products sparked a buying frenzy in multiple countries. In May of the same year, the eponymous Meme coin LABUBU was launched but failed to maintain its popularity. In June, a Labubu art auction achieved a total transaction amount of 3.73 million RMB, with one anthropomorphized Labubu selling for 1.08 million RMB.

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Analysis of the Reasons for the Labubu Craze

1. Blind Box Sales Model: Increases the purchasing excitement and uncertainty, driving repeat purchase behavior.

2. Excellent Cultural and Creative IP: Bridging cultural barriers, welcomed by both Asian and Western cultures.

3. Cross-Cultural Global Consumer Goods: Meeting the needs of consumers from different cultural backgrounds.

4. Product Innovation and Promotion Strategy: Combining patient accumulation with breakthrough innovation.

5. Complete industrial chain and ecosystem: Supported by China's strong manufacturing capabilities and mature industrial environment.

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Volatility of the Meme币 Market

Despite the strong sales of Labubu figurines, the related Meme coin LABUBU still faces a fate of plummeting. This phenomenon is not uncommon in the cryptocurrency market, with similar cases including:

• Pudgy Penguins: From NFT to physical toys, although achieving $10 million in sales, its meme coin PENGU still saw a significant decline.

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• Bored Ape (BAYC): Dropped from a peak price of 153.7ETH to 11.55ETH.

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• CryptoPunks: Dropped from a high of 125ETH to 41ETH.

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These cases indicate that even with backing from physical products or well-known IPs, Meme coins still struggle to escape high volatility and speculative nature. The lack of practical application scenarios and technical support makes these types of tokens highly susceptible to market sentiment and short-term speculation.

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Conclusion

The success of Labubu toys reflects the importance of high-quality IP and innovative marketing strategies. However, the fate of the related Meme coins also reveals the fragility of cryptocurrency assets that purely rely on hype and speculation. In the absence of substantial value support, any false prosperity will eventually face collapse, which is a portrayal of how many Meme coins "are born out of speculation and die from bubble bursts."

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