Labubu Phenomenon: From Mystery Box Craze to Speculative Bubble

The Labubu toy series under Pop Mart has recently sparked a craze, with the company's stock price soaring and its market value exceeding HKD 350 billion. Founder Wang Ning has also entered the ranks of the richest in Henan. By the end of 2023, Pop Mart had 401 stores in mainland China and 130 stores in Hong Kong, Macau, Taiwan, and overseas, operating in more than 30 countries and regions, with overseas revenue accounting for over 38%. However, the associated cryptocurrency LABUBU has seen a significant decline, with its market value dropping below USD 28 million and a 24-hour decrease of 20.4%.

!7377605

The Origin and Development of Labubu

Labubu is a uniquely shaped sprite character toy, featuring a round, fluffy body, large eyes, pointed ears, and nine sharp teeth, presenting a look that is both cute and slightly fierce. The character was designed by artist Long Jia Sheng, who was born in Hong Kong and raised in the Netherlands, inspired by Nordic folklore.

Labubu made its debut in 2015 and quickly rose to fame after collaborating with Pop Mart in 2019. In the first half of 2023, the "The Monsters" series (, which includes Labubu ), generated sales of 6.3 billion RMB for Pop Mart. In April 2024, the third generation of Labubu products sparked a buying frenzy in multiple countries. In June of the same year, a Labubu artwork was sold at an auction for 1.08 million RMB.

!7377606

The Reasons Labubu Became Popular

1. Mystery box sales model: Increases the sense of purchasing excitement and uncertainty, stimulating consumers to repurchase in order to obtain rare styles.

2. Excellent cultural and creative IP: transcending cultural boundaries, favored by both Asian culture and Western celebrities.

3. Product innovation and promotion: balancing patient accumulation with breakthrough innovation.

4. Mature industrial chain: China's well-established manufacturing ecosystem support.

!7377657

Speculative Risks in the Cryptocurrency Market

Despite the popularity of Labubu toys, the related cryptocurrency LABUBU has struggled to escape the fate of a sharp decline. This phenomenon is not uncommon in the cryptocurrency market, as projects like Pudgy Penguins(, BAYC), and CryptoPunks have experienced similar ups and downs.

The Fat Penguin NFT has dropped from a high of 34.8 ETH to 8.9 ETH, and its token PENGU has fallen from $0.0428 to $0.009369. The Bored Ape NFT has decreased from a peak of 153.7 ETH to 11.55 ETH, and CryptoPunks has fallen from 125 ETH to 41 ETH.

!7377641

!7377642

!7377626

!7377630

These cases indicate that even when supported by physical products or endorsed by celebrities, crypto assets that purely rely on hype will ultimately face a return to value. The sharp decline of the LABUBU token is another manifestation of this rule.

Conclusion

The success of Labubu toys highlights the power of quality IP and innovative marketing. However, the plunge of related crypto assets also warns investors to be cautious about speculative assets that lack practical applications and value support. Whether it is physical or virtual goods, long-term value will ultimately be determined by their actual use and intrinsic value, rather than short-term hype.

!7377639