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James Iles

Do You Trust Domain Name Auction Data?

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By James Iles, Jun 13, 2016
  1. James Iles

    James Iles NamePros Writer PRO Gold Account VIP Trusted Blogger

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    Last week, the Global Domain Summit in Hangzhou closed with the biggest domain name auction of all time. According to reports from eName and TLD Investors, the auction finished with over $46mm in domain sales, with banana.com being sold at around $3.4mm and miss.com being sold at around $865,000. These are impressive sales, but are these sales figures real?

    The Global Domain Summit was a conference in China that has largely gone under the radar of Western domain news outlets. In attendance were over 1,000 people, including some of the biggest investors and domain company owners such as Deijing Kong, the president of eName. The conference included many talks and "closed door meetings" covering subjects such as five letter .COM and six number .COM investment strategies.

    One of the most anticipated events was the auction, which promised to deliver impressive sales numbers, and according to reports, it did just that. Whilst we haven't got a list of all domains that were auctioned, eName have published a small list that includes:
    • Banana.com: 22.4mm Yuan ($3.4mm)
    • HG.com: 18mm Yuan ($2.7mm)
    • 73.com: 13mm Yuan ($1.97mm)
    • 345.com: 11.1mm Yuan ($1.68mm)
    • Miss.com: 5.7mm Yuan ($865,000)
    • HN.com: 6.75mm Yuan ($1.02mm)
    Are these sales real? Did they get completed? In December 2015, there was another auction that was hosted by 190.com as a part of a larger event. From research done a couple of months later, we found that buyers were able to back out of sales in return for a small fee.

    In that auction of December 2015, both HG.com and Banana.com were two of the names that attracted large bids of 16mm Yuan and 13.2mm Yuan respectively. According to WHOIS records, these names didn't sell at last year's conference, and so far haven't changed records almost 1 week after the Global Domain Summit auction. So far, we have no accurate knowledge of the status of the other names in this auction.

    We also do not know whether buyers at this event were able to back out by paying a small fees, as with the December auction. But we do know that false domain sales do get reported, and whilst it happens worldwide, it's a problem that seems to occur more regularly in China.

    Why do sales fail to go through? According to a comment made by @Doron Vermaat of Efty.com,
    Hype, vested interest and artificially increasing the value of a domain (or a type of name) are three of the major reasons why many sales, especially at auctions, are reported but never go through.

    If you make investments based on recent sales, do you trust domain auction data? Do you carry out your own due diligence to check on legitimate sales?
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
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  4. James Iles

    About The Author — James Iles

    Writer for NamePros.com. For all inquiries relating to stories and interviews, please email: [email protected]

    This is James Iles's 211th blog post on NamePros. View all blog posts

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  5. Comments (11)

  6. elevator

    elevator DnCombo.com VIP

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    Food for thought. Those who are wise should reason well on this before embark on any huge investment.
    Thanks and cheers.
     
  7. frank-germany

    frank-germany F1lter.com xpired domain search engine Gold Account VIP

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    Yes I absolutely trust everthing I read on the net
    thats lifestyle, men ;)
     
  8. wot

    wot Top Member VIP ★★★★★★★★★★

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    Loads of hype coming out of Chinese auctions especially if you see the likes of .xyz ,.top etc linking up with local auction platforms and coming up with the " big" ticket sales.
    Not to say the same thing does not go on at domain conferences in the west.

    Do I trust them? In general a resounding no!
     
  9. pablohc86

    pablohc86 Active Member VIP

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    When investing so big amount a due diligence is always required and more deep is more better is
     
  10. NYK

    NYK uno dos tres CUATRO!!

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    image.png For your interest: Full List here but only in Chinese. 万on the end means 5 zeros on the end and is quoted in RMB.

    eg: Banana.com 2240 万 = 22,400,000
     

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  11. wot

    wot Top Member VIP ★★★★★★★★★★

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    Ha,Just posted on my blog, a pinch of salt perhaps?

    I trust these results less than some of the western auctions, but then I am an old cynic.
     
  12. NYK

    NYK uno dos tres CUATRO!!

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  13. NYK

    NYK uno dos tres CUATRO!!

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    Well no comments really because I'd also had experiences with people backing out from Auctions in both east and west renowned marketplaces and without compensations either! Though mine aren't no big transactions.... So not surprised at all!
     
  14. NYK

    NYK uno dos tres CUATRO!!

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  15. wot

    wot Top Member VIP ★★★★★★★★★★

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    Good info,thanks.
     
  16. woody3

    woody3 New Member

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    I don't trust what I can't smell.
     
Lysted
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