LABUBU Coin Crash Highlights Risks of Copycat Memecoins in Crypto Market

Pop Mart’s Hong Kong-listed shares have experienced a remarkable surge, increasing over 30-fold in three years, attracting significant attention within capital markets. However, the recent emergence of the “LABUBU Coin,” a memecoin inspired by Pop Mart’s popular “LABUBU” IP, has raised concerns due to its speculative nature and lack of official backing. Launched on May 29 by an anonymous community, this token saw an initial spike followed by a steep 91.66% decline within days, highlighting the volatility inherent in emotion-driven crypto assets.

Market experts emphasize that such memecoins often exploit trending intellectual properties as a veneer, while lacking genuine commercial viability and transparent operational frameworks. These projects typically employ low liquidity tactics to artificially inflate prices, enticing retail investors to purchase at inflated levels before rapid sell-offs occur, leaving late entrants with significant losses.

BiyaPay analysts caution investors about the heightened risks associated with memecoins that leverage popular IPs without regulatory compliance or clear business models. In contrast, sound investment opportunities should prioritize transparency, robust fundamentals, and adherence to regulatory standards to mitigate risk.

Amidst the complexities of the crypto ecosystem, BiyaPay offers a secure and compliant platform supporting over 200 mainstream cryptocurrencies with zero-fee trading. It also facilitates USDT investments in U.S. and Hong Kong equities without offshore account requirements, alongside multi-currency deposit and withdrawal options. Investors are urged to adopt a rational approach, avoiding speculative copycat projects, while leveraging BiyaPay’s reliable infrastructure for steady portfolio growth.