Is Labubu following the same boom-and-bust path as collectibles past?
The psychology behind collectible crazes hasn’t changed in centuries. Long before Gen Z queued for Labubu blind boxes, 17th-century Dutch merchants were paying fortunes for tulip bulbs. The same forces still drive these manias: herd mentality, fear of missing out, manufactured scarcity and seductive stories that rationalise absurd prices. Every speculative bubble follows a predictable five-stage cycle—displacement, boom, euphoria, profit-taking and panic—creating cautionary tales that resurface with uncanny precision across generations.
The five stages of a collectible craze
The classic bubble lifecycle begins with displacement, when a new and exciting item captures public attention and sparks curiosity. From there, the market enters a boom, as early adopters drive up prices, media coverage amplifies the hype and more participants rush in.
Inevitably, boom gives way to euphoria. Prices detach completely from reality, and stories of overnight fortunes spread, convincing even sceptics to join in. At this point, the frenzy feels unstoppable—until it isn’t. In its next stage, profit-taking begins, as shrewder players start selling while demand still looks strong. Finally comes panic. Confidence evaporates, buyers vanish and a wave of selling triggers a sudden crash.
In case you missed it: Labubu, sneakers and vintage Dior: where Gen Z are putting their money now
Which brings us back to today’s vinyl monsters: are Labubu figures the latest collectible to march toward collapse? To answer that, it helps to look at the manias of the past—and the cautionary histories of hype they left behind.
1637 tulip craze: when flowers cost more than houses
At its peak, a prized tulip bulb could fetch as much as a grand Amsterdam house. (Photo: Timo C Dinger / Unsplash)
1 / 1
In the 17th-century Dutch Republic, the newly imported tulip became the ultimate status symbol for prosperous merchants. The most prized bulbs were those infected with a mosaic virus that produced dramatic flame-like patterns on petals.
Demand for these rare specimens created a speculative frenzy, spilling from gardens into taverns, where futures contracts allowed for pure speculation. At its peak, a single bulb of a coveted variety could fetch more than 5,000 guilders—enough to purchase a grand Amsterdam house and more than ten times a skilled craftsman’s annual income.
