🟪 Move over, NFTs

The Labubu has stolen the collectibles spotlight

Sinister little monsters

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.

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?

There’s a whimsy to the Labubu that has always eluded NFT art. Maybe it’s the whiff of the cash grab that surrounds all NFT art, even when it comes to the coolest and cutest of the digital creatures. Maybe it’s that NFTs are inaccessible to anyone who isn’t hip to the technology. 

There’s no denying the fact that Labubus have made it where NFTs have so far failed.

Let’s just hope that Labubus don’t come to the blockchain and prove me wrong.

Brought to you by:

Arkham is a crypto exchange and a blockchain analytics platform that lets you look inside the wallets of the best crypto traders — and then act on that information.

Arkham’s Intel Platform has a suite of features including real-time alerts, customizable dashboards, a transaction visualization tool, and advanced transaction filtering — all of which is accessible on all major blockchain networks, and completely free.

Arkham’s main product is the exchange, where users can express their trade ideas against the market.

The Roundup

Empire: Katherine highlights BWR’s new dashboard for those looking to keep up with the growth of crypto treasury companies. DAT’s what I’m talking about.

Forward Guidance: Crypto investment products raked in record monthly flows in July. Ben spotlights the institutional demand for ETH that helped drive the surge. 

Lightspeed: Solana’s had a pretty successful 2025 already. Now they’re saying it could become the backbone for internet capital markets.

0xResearch: Ethereum celebrated its 10th anniversary this week. Macauley recaps 10 reflections from 10 different voices in honor of the celebration.

The Drop: While Kate’s away, the takeovers are in play. Jack dives into Wavebreak, the “human-first” Solana token launchpad brought to you by Orca.

Supply Shock: David takes a look at a 2011 incident that serves as a reminder of one of Bitcoin’s oldest cautionary tales. 

Brought to you by:

Katana is a DeFi chain built for real sustainable yield and deep liquidity. It concentrates liquidity into core applications and channels the chain’s revenue back to the users.

Creating a better DeFi experience that benefits the active users on the chain.

Earn boosted yield and KAT tokens: Deposit directly into vaults on the katana app and start earning on your ETH, BTC, USDC, and more.

Tell your friends, rack up rewards! 🎉

Some market insights are just too good to not share. Use the Breakdown referral program and snag rewards while you’re at it:

  • 🎤 10 referrals: A personal shoutout in The Breakdown newsletter