A recent surge in the popularity of Labubu dolls has caused such a frenzy that the retailer, Pop Mart, has had to halt sales in its stores, citing concerns over safety. This unexpected development has resulted in a parallel financial phenomenon, causing the corresponding memecoin, Labubu Memecoin (LABUBU), to sky-rocket a stunning 5,934% in the last two weeks, reaching a market cap of $49.16 million.
LABUBU, an unofficial memecoin on Solana, was created in October 2024 via Pump.fun. Initial response to the coin was enthusiastic, with a market cap that quickly ballooned to $10 million. However, it wasn’t long until the coin’s value fell back, fluctuating between $18.5 million and just under $1 million, a threshold it remained at for several months. In the course of the past seven months, the coin’s fortunes have changed dramatically. According to DEX Screener, LABUBU’s market cap has surged from $814,710 to $49.16 million. At the time of writing, the token has seen a dip of 15% and currently sits at a market cap of $41.55 million.
Pop Mart, the main retailer of Labubu dolls, relayed to BBC News on Friday that it was discontinuing sales of the coveted toys in its stores. The company stated that this decision was made in an effort to “prevent any potential safety issues.” This action was prompted after several reports of chaos erupting in numerous Pop Mart stores across the UK. The popularity of these collectibles has driven some consumers to extreme lengths, with incidents involving shoppers camping outside stores for hours on end, and even altercations with staff and other customers, all in an attempt to secure a Labubu doll.
Labubu dolls, the catalysts for this memecoin’s meteoric rise, have become a cultural phenomenon that extends beyond traditional toy collecting. Their popularity has transcended into the realm of cryptocurrency, illustrating the ever-evolving and often surprising interplay between pop culture and finance. As the world watches the Labubu frenzy unfold, it underscores the unpredictability of the cryptocurrency market and its susceptibility to the whims of popular trends.
It remains to be seen how the halt in sales of Labubu dolls will impact the value of the LABUBU memecoin, and whether the coin’s investors will maintain their interest in the absence of the physical toy. As with any financial investment, the potential for significant gain often comes with the risk of equally significant loss.
