Labubu: From Toy Craze to Digital Asset Bubble

Labubu, as a plush toy of a sprite character, has gained widespread attention for its unique appearance design. This character, created by artist Long Jiasheng, is inspired by Nordic folklore and mythology, and made its debut in 2015. It quickly gained popularity after collaborating with a toy company in 2019.

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In 2024, the "The Monsters" series belonging to Labubu generated sales of 6.3 billion RMB. In April 2025, the third generation of Labubu products triggered a buying frenzy in multiple countries. In May of the same year, a digital asset with the same name was launched, which briefly stirred up speculation but ultimately could not escape the fate of a price decline.

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Labubu's success is closely related to its sales model. The use of blind boxes increases the excitement and uncertainty of purchases, driving up the secondary market prices of certain styles. Experienced collectors indicate that this element of surprise is the key attraction.

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As an excellent cultural and creative IP, Labubu has successfully crossed cultural barriers and is loved by both Asian and Western consumers. Its popularity is also attributed to the innovative accumulation of product creation and promotion, as well as China's complete industrial chain and mature industrial ecosystem.

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However, the digital assets related to Labubu's physical toys struggle to maintain high prices. Similar cases like the Fat Penguin series, although successful in the physical toy market, have seen significant price drops in their digital assets. Pure digital asset projects such as Bored Apes and CryptoPunks have also experienced a process of peaks and troughs.

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These cases indicate that whether it is a project supported by physical products or purely digital assets, it is difficult to avoid significant price fluctuations. In particular, digital assets that rely solely on the popularity of physical products are more susceptible to rapid depreciation due to market sentiment.

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The rapid rise and fall of the prices of Labubu-related digital assets reflect their high speculative nature and lack of practical application value. Although the physical Labubu toys were once all the rage, when the market heat dissipates, speculative assets lacking substantive value support will ultimately face a return to value. This phenomenon vividly illustrates the essence of certain digital assets that "are born from hype and die from the bursting of bubbles."

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