Three years ago, a Bubble Mart employee invited us to share about NFTs within the department, but ultimately we did not venture into Web3. In hindsight, this decision was absolutely right.

Why did NFTs, which were just as popular back then as Bubble Mart, ultimately fail to become "digital trendy toys"?

Three reasons: an overly concentrated financial environment, lack of tangible experience, and disconnection from real life.

The total supply of NFTs is too low, and all players have a strong aversion to large-scale releases and new series, causing the overall environment to lean towards financial speculation. Everyone is afraid of "dilution," yet no one thinks about how to "expand."

Is Labubu not speculated upon? Of course, some do speculate, but with high supply, numerous series, and low entry barriers, it can accommodate more ordinary people who "just want to buy a cute thing." Thus, it forms a culture, and NFTs become a trading platform.

Additionally, NFTs are virtual products. When something lacks weight, touch, or usage scenarios, it enhances its speculative attributes while diminishing its cultural value and sense of acquisition.

Let’s use an example for clarity. When you see someone carrying a Labubu on the street, you may envy them for not having one. However, when it comes to a small image, you won't feel envious because you can simply right-click to save it as your avatar.

Labubu can be placed in your home, office, car, backpack, or phone case; it is part of your living space. In contrast, NFTs typically just sit in your wallet, never truly entering your life. You cannot connect with strangers through them, and often, you feel embarrassed to admit that you are still into NFTs.

When it ceases to be a social currency or a speculative label, and once NFTs lose the potential for appreciation, they are left with only the "image" itself.

In the early days, we were too eager to turn NFTs into financial products, neglecting to shape them as "objects that can be loved." As a result, they are destined to struggle in reaching a broader audience.