Labubu toy becomes popular, the eponymous Meme coin, however, experiences a big dump.

The Labubu dolls have recently taken the world by storm, with their producing company’s stock price soaring over 200% this year, and its market value exceeding HKD 350 billion. By the end of last year, the company had 401 stores in mainland China and 130 stores in overseas and Hong Kong, Macau, and Taiwan regions, with operations covering over 30 countries and regions, and overseas revenue accounting for over 38%. However, the cryptocurrency LABUBU, sharing the same name, has not been spared from market fluctuations, with its market value currently dropping to $27.89 million and a 24-hour fall of up to 20.4%.

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The Origin and Development of Labubu

Labubu is a uniquely shaped sprite doll characterized by its round body, big eyes, and pointed ears, with the most striking feature being its mischievous smile made up of nine sharp teeth. This image 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 became popular after collaborating with a toy company in 2019. In the first half of 2024, its associated series "The Monsters" generated 6.3 billion RMB in sales. In April 2025, the third generation of Labubu products sparked a buying frenzy in multiple countries. In May of the same year, the cryptocurrency LABUBU was born, but soon fell into price fluctuations. In June, an auction of Labubu artworks had a total transaction amount of 3.73 million RMB, with one piece selling for a high price of 1.08 million RMB.

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Reasons for Labubu's Popularity

1. Unique Sales Model: Utilizing a blind box format to increase purchasing excitement and uncertainty, attracting consumers to make repeat purchases.

2. Excellent Cultural IP: Crossing cultural boundaries, loved by stars from Asia and the West.

3. Industry Chain Support: China's complete industrial chain and mature industrial ecosystem provide strong support for its development.

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Meme coin can hardly escape the fate of a big dump

Despite the enduring popularity of Labubu toys, the cryptocurrency LABUBU with the same name struggles to maintain its high position. Similar situations are also common among other well-known IPs:

• Pudgy Penguins: From NFTs to physical toys, sales have been considerable, but its cryptocurrency PENGU has fallen by 78% in six months.

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• Bored Ape (BAYC): The NFT price has fallen from a high of 153.7 ETH to the current 11.55 ETH.

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• CryptoPunks: fell from a peak of 125ETH to the current 41ETH.

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These cases indicate that whether backed by physical products or purely digital assets, Meme coins are difficult to escape the fate of significant volatility. The rapid rise and fall in the price of LABUBU reflects its high speculative nature and the lack of practical application scenarios. Even though the physical toy market is booming, once the hype subsides, virtual assets lacking actual value support will ultimately face a return to value.

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This phenomenon again confirms the inherent characteristic of Meme coins "born out of speculation, and perishing due to bubble bursts." Although some Meme coins may yield high returns in the short term, investors should still exercise caution, recognize their essence, and avoid blindly following trends.

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