Labubus have succeeded in every way that NFTs have failed

This is a segment from The Drop newsletter. To read full editions, subscribe.

NFTs, meet the Labubu — your worst enemy.

The possibility of crypto has long led artists to dream of creating characters that become universally beloved while also making a ton of money.

It’s not an impossible fantasy. It’s at the heart of pretty much all NFT collections, and no matter what the creators say about their mission to build community, money is the bottom line.

The blueprint for obsession already exists — look at Pokémon, My Little Pony, Yu-Gi-Oh!, Beanie Babies. People have proven they are willing to spend probably too much money and too much time collecting many versions of cute little things. That’s a given.

And yet, essentially all NFT collections have failed at creating lasting public interest in their version of “cute little things,” perhaps with the exception of Pudgy Penguins and their Walmart plushies.

But they’re clearly no Labubus.

It’s so humbling to see a completely non-blockchain, non-NFT, non-crypto collectible do what NFT collections have been trying to do for years, essentially overnight.

Labubus, sinister yet cute tiny monsters, were created by Hong Kong-Belgian artist Kasing Lung back in 2015. They only became the phenomenon they are today after partnering with toymaker Pop Mart for mass distribution in 2019. BlackPink’s Lisa (arguably one of the world’s largest popstars) wearing a Labubu on her purse in April 2024 did not hurt.

Loading Tweet..

What makes it such a laugh riot to me, an NFT skeptic, is that beloved worldwide phenomenon Labubus, physical plushies, can attribute their success to accidentally following the NFT “guide to success” that has failed so miserably with “digital” plushies.

What’s that guide? Rarity, exclusivity, community.

Labubus often come in “blind boxes,” meaning that it’s a crapshoot what your Labubu will look like. As Psychology Today writes,

“This uncertainty is not unlike a slot machine, which taps into our brain’s reward circuits. A limited edition of ‘secret’ Labubus can spark joy, and even an obsession. Then, collecting is more than acquisition; it becomes a ritual, a source of community, and possibly a point of pride.”

This sounds like the “About” section on every failed NFT collection’s website, right after they explain their rare attributes, surprise mint schedules, and link to their community Discord.

More celebrities besides Lisa have more recently been spotted with a Labubu accessory — Rihanna, Kim Kardashian and Dua Lipa, to name a few.

And while some of the more well-known NFT collections did have their celebrity followers too (most notably Justin Bieber’s Bored Ape and Jay-Z’s CryptoPunk), we now cringe when we look back on the celebrity-studded NFT craze. Nobody is cringing that hard at Labubus — yet.

Yes, Labubus are probably also over-hyped, and yes, it is funny to see Labubus at both the playground and the bar. But they might’ve unlocked the long-lasting charm that no NFT collectible has come close to achieving.

Why am I so certain that you’ll never see a Pudgy Penguin bag charm on a Kardashian arm anytime soon?