Labubu is a global sensation, but the meme coin of the same name can't escape the big dump fate.

Labubu is a plush toy of a sprite character designed by artist Long Jia Sheng, characterized by its round body, big eyes, and pointy ears, complemented by a mischievous smile consisting of nine sharp teeth. This character originates from Long Jia Sheng's "The Monsters" story series, inspired by Nordic folklore and mythology.

Labubu made its debut in 2015 and gained wider attention after collaborating with a toy company in 2019. According to a report released by the company in August 2024, the "The Monsters" series generated sales of 6.3 billion RMB in the first half of that year. In April 2025, the third generation of Labubu's PVC plush products sparked a buying frenzy in multiple countries.

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Labubu's popularity is closely tied to its blind box sales model. This approach enhances the excitement and uncertainty of purchases, driving players to repeatedly buy in pursuit of rare editions. Veteran collector Desmond Tan states that the surprise element of blind boxes is a major attraction, and he shakes the boxes to search for special editions.

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As an excellent cultural and creative IP, Labubu has successfully crossed cultural barriers, being embraced by Asian culture and favored by Western celebrities. Xinhua News Agency has pointed out three main reasons for Labubu's explosive popularity: its cross-cultural global consumer product attributes, the patient accumulation and innovative breakthroughs in creation and promotion, and China's complete industrial chain and mature industrial ecosystem.

However, Meme coins related to physical toys still cannot escape the fate of a big dump. The same-named Meme coin LABUBU, which was launched on May 29, 2025, once sparked a wave of speculation, but ultimately could not avoid a fall. Currently, its market value has fallen below $28 million, with a 24-hour decline of 20.4%.

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Similar cases include Pudgy Penguins. Although its physical toys achieved good sales after being launched at Walmart in the United States, the prices of its NFTs and Meme coins still experienced a significant fall. The Pudgy Penguins NFT has dropped from a high of 34.8ETH in December 2024 to the current 8.9ETH, while the Meme coin PENGU has fallen from a high of 0.0428 dollars in January 2025 to the current 0.009369 dollars, with a decline of 78%.

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Famous NFT projects like Bored Ape Yacht Club (BAYC) and CryptoPunks have also gone through the process of soaring prices to big dumps. Bored Apes dropped from 153.7 ETH in May 2022 to the current 11.55 ETH, while CryptoPunks fell from a high of 125 ETH in 2021 to the current 41 ETH.

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These cases indicate that whether it's a project supported by physical toys or purely digital assets, it is difficult to avoid price collapses after the hype fades. The rapid rise and fall of LABUBU reflect its high speculative nature and lack of practicality. Even though the physical Labubu toys were once popular, when the market excitement wanes, the false prosperity lacking actual value support will ultimately collapse, which is the common fate of many Meme coin projects.

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