Organisers have yet to name a cause for the reason behind the iconic duck's explosion, local media said.
According to local media reports, Hoffman had cancelled his plans to visit Keelung after he was unhappy with the installation arrangements made by local organisers.
Spectators expressed their disappointment with the duck's parting just before the New Year.
"I mourned for 3 seconds when I came here (and saw it)," one unidentified man told local media.
"It was too dirty beforehand. It maybe exploded due to the bath," an unidentified woman said, holding back laughter.
Local media said that another duck on display in the Taiwanese city of Taoyuan exploded after being reinflated just after a power outage caused by an earthquake.
Hofman's rubber ducks have already visited Hong Kong, Pittsburgh, U.S.A. and Sydney, Australia, among other places.
Dutch artist Florentijn Hofman's giant rubber duck exploded in front of crowds on Tuesday (December 31) just hours before the New Year's countdown.