Is Pop Mart's #LABUBU about to collapse?

The limited edition labubu is now being traded at 36,000 each, and Pop Mart's stock price has also reached a new high, hitting 350 billion Hong Kong dollars.

I increasingly feel that there's a hint of 'fraud' involved.

Buying off certain celebrities privately to promote products, creating viral traffic spikes, and inducing emotional spending among fans;

Hiring internet trolls to hype it up online, creating a buzz;

Employing scalpers to film videos of fights during rush purchases, using scarcity marketing, and then spreading it on the internet.

This generates a sense of FOMO, ultimately driving the price to an unbelievable height, making people irrationally chase high prices to buy in, and anyone who can be fooled is fooled.

When this hype dies down and the tide recedes, it will leave a mess, and in the end, it's the consumers who will pay.

The now drastically reduced price of the once-popular Lego Bear serves as a cautionary tale.

Compared to the NFT boom back in the day, the logic is similar, and the final price trend is likely to be similar as well.

The difference is that buying NFTs is more of an investment behavior, aimed at holding for appreciation.

Buying labubu is purely a consumption behavior, but due to human-driven hype, it has a premium of dozens or hundreds of times.

Additionally, NFTs are relatively intangible, whereas labubu does have a physical doll, but its price has seriously deviated from its actual value.

In contrast to highly priced luxury brands like LV and Chanel, which have a long accumulation of history, culture, and craftsmanship, and whose prices gradually rise with public recognition, the price of labubu and similar items will inevitably be very fierce once the hype fades.

In summary, I believe there is a certain 'scam' aspect to labubu.

This kind of artificially created scarcity and panic-driven price bubble is ultimately unlikely to have a good ending.