Labubu: The Rise and Fall from Popular Toy to Virtual Money

Labubu is a popular plush toy of a sprite character, attracting numerous fans with its unique appearance. This character has a round body, big eyes, pointy ears, and nine sharp teeth, presenting a playful yet slightly fierce image.

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The creator of Labubu is the artist Long Jiaseng, who was born in Hong Kong and grew up in the Netherlands. His inspiration comes from Nordic folklore and mythology, initially using a fountain pen for designs. Labubu made its debut in 2015 and gained wider attention after collaborating with a toy company in 2019.

The toy company generated sales of 6.3 billion RMB through the "The Monsters" series in the first half of 2024. In April 2025, the third generation of Labubu rubber plush products sparked a buying frenzy in several countries. In May of the same year, a virtual money named Labubu was launched, which, although it initially caused a speculative surge, ultimately could not escape the fate of a price decline.

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The reason Labubu can create a frenzy mainly has two causes:

1. Unique sales method: Adopting the blind box model increases the excitement and uncertainty of purchases, prompting consumers to buy repeatedly in pursuit of rare styles.

2. Outstanding cultural and creative IP: It transcends cultural barriers, being accepted by Asian culture while also favored by Western pop music and sports stars.

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However, the Virtual Money related to Labubu cannot escape the fate of a sharp decline. This phenomenon is not uncommon in the cryptocurrency market, with similar cases including Pudgy Penguins, BAYC, and CryptoPunks.

The Fat Penguin once launched NFTs, Virtual Money, and physical toys, but its NFT price has fallen from a peak of 34.8 ETH to the current 8.9 ETH. The related virtual currency PENGU has also dropped from a high of 0.0428 dollars to 0.009369 dollars, a decline of 78%.

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Bored Apes and pure digital asset projects like CryptoPunks have also experienced a significant price drop. Bored Apes fell from a peak price of 153.7 ETH to 11.55 ETH, while CryptoPunks dropped from a high of over 125 ETH to 41 ETH.

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These cases indicate that even projects supported by physical products or those that receive a lot of attention find it difficult to maintain high prices for their associated Virtual Money in the long term. For Virtual Money that relies solely on hype, a price drop is an inevitable outcome.

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Overall, Labubu has achieved great success as a physical toy, but its derived Virtual Money struggles to shake off the characteristics of strong speculation and lack of actual value support. When the market frenzy subsides, this bubble built on false prosperity will inevitably burst, reflecting the essence of certain Virtual Money that "is born from speculation and dies from lack of value."

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