Remember the NFT gold rush? The prospects for instant wealth, improved access to arts markets, and a digital transformation led by… JPEGs? For most Africans, the hype didn’t match the reality. High gas fees and lack of access to fast and consistent internet posed serious challenges. Beyond this, a widespread confusion about the nature of the process left almost everyone out of the game. Labubu, the “ugly cute” creation purely designed with fun in mind, is winning hearts worldwide. Some are already likening it to the NFT craze that took the world by storm. Could this be different? Would Labubu promise the economic empowerment to women and marginalized that NFTs only flirted with?

Hype Cycles Always End, Right? Wrong?

This meteoric rise of Labubu, made possible by TikTok and influencer celebrity endorsement, sounds familiar — like the NFT craze. It was the FOMO that led to many of these prices reaching ridiculous heights, pixelated images selling for millions of dollars. The excitement today is almost indistinguishable from that mania surrounding Labubu. When Pop Mart’s stock price shot through the roof, fortunes were made and everyone wanted a slice. Sound familiar? Recall how the founder turned out to be the richest person in Henan. It's a classic boom and bust story waiting to happen, isn't it?

While NFTs primarily benefitted tech-savvy investors and artists already established in the digital world, Labubu could offer a more accessible entry point for African creatives and entrepreneurs. Think about it: you don't need a crypto wallet or specialized knowledge to design Labubu-inspired merchandise, create fan art, or organize community events. The barrier to entry is significantly lower.

Surely we can learn something from the NFT debacle. Let’s focus that excitement into something long term and far more productive for African communities!

Ugly Cute, Beautiful Opportunity?

In fact, one of the largest criticisms of NFTs was that they had no utility. But beyond bragging rights and speculative value, what did they really provide? Labubu, in contrast, is very much rooted in the physical world. It’s a pretty amazing, tactile product that’s meant to be customizable, collectible and used in all sorts of creative projects.

Picture this — labubu themed clothing, furniture accessories designed by the best young African artists, traditional African motifs worked into Labubu’s design. Imagine these community-driven art workshops helping young people develop the skills to produce and market their own Labubu-inspired crafts. The possibilities are endless.

I visited some young artists in Nairobi who dabbled in NFTs during the crypto boom. They were dazzled by the promise but then disenchanted by the price and the complexity. "The gas fees alone made it impossible for me to sell my art," lamented one artist. "It felt like the system was designed to exclude people like me."

These artists are now, as the town’s name suggests, quietly confident about Labubu. They see it as a potential platform for showcasing their talent and generating income, without the same financial and technical hurdles.

  • NFTs: High gas fees, complex technology, limited accessibility.
  • Labubu: Lower barrier to entry, tangible product, potential for community-driven initiatives.

Scarcity vs. Cultural Relevance

The NFT universe was based on the idea of exclusivity. Supply side artifice Limited editions, unique digital assets drove up their value speculator hype bubble. However, what occurs when it turns into all-too-easy for anybody to make an NFT? All that happens is the market becomes saturated, and everyone’s value crashes. (Remember that 90% decline?) And then there are the environmental concerns around some of the technologies used in NFT transactions.

Labubu, while mass-produced, can tap into something far more powerful: cultural relevance. Through incorporating African stories, aesthetics, and traditions into the Labubu phenomenon, I believe we can develop something really special and worthwhile. This isn’t simply pursuit of commercialism to sell more toys, this is about African creativity, entrepreneurship and the positive impact that can have for communities.

Let's be clear: Labubu is not a guaranteed solution to economic inequality. There’s a very genuine risk of exploitation, where big corporations make money from the creativity of Africans while failing to properly remunerate local artists. So, we need to be on guard and make sure that any Labubu-related efforts center just compensation, community ownership, and ecology over profits.

Ultimately, Labubu’s potential to empower Africa the way NFTs once promised lies in our hands. Our commitment to African artists and entrepreneurs is deep. To ensure beneficial outcomes, we need to prioritize investments in community-driven initiatives and hold these companies accountable for implementing fair, equitable practices. Now is the moment to convert that hype into reality, toward something lasting and ultimately enabling as opposed to hyped. Let's not miss this opportunity.