Labubu Craze Compared to NFT Boom: Will the Collectible Face a Similar Market Correction?
The collectible toy character Labubu, created in 2015 by artist Kasing Lung under Pop Mart, has surged to global prominence, especially after viral celebrity endorsements in 2024. Its price skyrocketed, with a limited edition auction reaching ¥1.08 million and Pop Mart’s stock multiplying tenfold in a year. This hype draws comparisons to the NFT bubble: both rely on scarcity, celebrity influence, and social media-driven FOMO. Historically, similar speculative frenzies—such as NFTs or earlier toys like Molly and Bearbrick—faced sharp value drops after the initial craze. While NFTs have shown dramatic long-term pullbacks, Labubu’s scarcity is enforced by the brand and could be more vulnerable to oversupply or waning demand. Only Bitcoin (BTC), mentioned as uniquely resilient, has avoided such cycles. The article concludes that Labubu may not escape a correction, drawing a parallel to NFT market patterns and raising questions about sustainability in speculative asset booms.
Neutral
The news, while detailing the speculative frenzy around Labubu and its parallels to the NFT boom and bust, does not directly impact core cryptocurrency market fundamentals. It highlights market psychology and asset bubbles, but does not announce any technological or regulatory change impacting cryptocurrencies. For crypto traders, the main implication is a reminder of the risks of speculative asset cycles, similar to what occurred with NFTs. However, since no specific coin, token, or crypto platform is directly affected by this news, and because only Bitcoin is cited as an exception to such cycles, the overall effect on trading sentiment or price action is likely neutral.