NameSilo

4L CHIPS: Wasn't it the best example of pump and dump?

Labeled as discuss in Chinese Domain Discussion, started by Arpit131, Oct 15, 2017

Replies:
60
Views:
6,527

  1. Arpit131

    Arpit131 Top Member Epik.com Staff VIP

    Posts:
    4,150
    Likes Received:
    4,615
    We are all now familiar with the term "PUMP and DUMP" which we daily see in crypto currency markets.

    Looking backwards into the time of Chinese premium and 4L domain names reaching $2,500 and then coming back to the floor, don't you think it was the perfect example of pump and dump?

    Pumping the price continuously higher and higher and when a peak was attained, dumping it slowing back to the floor price.
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. IMEZI

    IMEZI Top Contributor VIP ★★★★★★★★★★

    Posts:
    5,367
    Likes Received:
    1,803
    as the digital internet marketer always said : Rinse and Repeat. Buy it when it reach floor price and pump it up till the peak and sold [DUMP] it LOL
     
  3. dordomai

    dordomai Top Contributor VIP

    Posts:
    2,581
    Likes Received:
    3,111
    sure... also known as long term bag holding or bag and hold investing.

    .mobi was also an example of pump and dump. It's a common strategy in domaining.
     
    Last edited: Oct 15, 2017
  4. Chris Hydrick

    Chris Hydrick ChrisHydrick.com VIP

    Posts:
    6,223
    Likes Received:
    9,408
    Here's an old DomainSherpa video from November 18th, 2015 titled: Chinese Numeric and Acronym Boom or Bubble? Frank Schilling shares he sold 2,000 4L CHIPS for 3 Million dollars.

    https://www.domainsherpa.com/discussion-20151118/

    It's interesting to re-watch this nearly two years later in 2017. One Sherpa was even pushing 6N.com's referencing these 60 day old hand regs were selling everyday on NameJet for over $300, and were trading in bulk at a value of $250 each.
     
    Last edited: Oct 15, 2017
  5. offthehandle

    offthehandle . VIP

    Posts:
    5,129
    Likes Received:
    8,513
    .
     
    Last edited: Oct 15, 2017
  6. Kuffy

    Kuffy Name Stag VIP

    Posts:
    3,593
    Likes Received:
    5,700
    It's not just digital stuff. Zero interest rates have allowed pump and dump to happen with share prices. P/E ratios rising whilst profits are dropping is counter-intuitive. Then you can look at the derivatives market, and the way that is kept afloat. All of these markets are manipulated. If this wasn't so, then there would be no justification for the limited life Euro to be rising whilst the rosy futured Sterling is dropping.
     
  7. Adnan Shaikh

    Adnan Shaikh Established Member

    Posts:
    120
    Likes Received:
    129
    Isn't that how everything works now a days
     
  8. Arpit131

    Arpit131 Top Member Epik.com Staff VIP

    Posts:
    4,150
    Likes Received:
    4,615
    Don't know about everything but that is how some low volume/low price crypto-currencies are working now-a-days! ;)
    And I could connect to the pump in Chips through that!!
     
  9. Arpit131

    Arpit131 Top Member Epik.com Staff VIP

    Posts:
    4,150
    Likes Received:
    4,615
    You seem to be following the stock and futures market closely, my friend!!
     
  10. domeen

    domeen Top Contributor VIP

    Posts:
    1,165
    Likes Received:
    3,894
    Where you not one of those bumpers? Who pushed those 5 letter chip.nets?
     
  11. SpareDomains

    SpareDomains Jay VIP ★★★★★★★★★★

    Posts:
    3,467
    Likes Received:
    2,459
    I had a good handful of random (non chips) and let them all fly. More of a keyword or keyword brandable guy so couldn't resist ringing the register at $300-$600 each on domains I paid x-xx each for.
     
  12. Magul

    Magul White Bread is Head VIP ★★★★★★★★★★

    Posts:
    2,413
    Likes Received:
    1,114
    We do not find sufficient usability in random four letter domain name.
     
  13. SunCityVip

    SunCityVip New Member

    Posts:
    7
    Likes Received:
    1
    I recall around ‘10 or ‘11, Someone was dropping around 4K of this stuff...had to quickly grab some and much of the better ones for cheeeeeaaaaap!
    I also started getting low offers for bunch of great llll.coms. Might of been the same person/group that let things drop, purposely. Go figure
     
  14. Chris Hydrick

    Chris Hydrick ChrisHydrick.com VIP

    Posts:
    6,223
    Likes Received:
    9,408
    456,976 total 4L.com
    160,000 4L.com without A, E, I, O, U, V (Total # of 4L CHIPS)

    Price X Market Size = Marketcap

    $2.500 per 4L CHIP = 400 million dollar maketcap
    $2.000 per 4L CHIP = 320 million dollar marketcap
    $1.500 per 4L CHIP = 240 million dollar marketcap
    $1,000 per 4L CHIP = 160 million dollar marketcap
    $500 per 4L CHIP = 80 million dollar marketcap
    $100 per 4L CHIP = 16 million dollar marketcap

    4,000 CHIPS at $2500 each would be $10,000,000
    4,000 X $10 renewal X 6 years = $240,000 in renewal fee's.
    Net = $9,760,000
     
  15. Weber

    Weber Top Contributor VIP ★★★★★★★★★★

    Posts:
    916
    Likes Received:
    406
    What does 'Pump And Dump' mean
    Pump and dump is a scheme that attempts to boost the price of a stock through recommendations based on false, misleading or greatly exaggerated statements. The perpetrators of this scheme, who already have an established position in the company's stock, sell their positions after the hype has led to a higher share price. This practice is illegal based on securities law and can lead to heavy fines.


    Read more: Pump And Dump http://www.investopedia.com/terms/p/pumpanddump.asp#ixzz4ve20dgsx
     
  16. Shams

    Shams Will update soon VIP

    Posts:
    1,768
    Likes Received:
    716
    Indeed that was a clear practice of Pump and Dump. did anyone notice, Now where are those million dollar budget companies which were established overnight? internet or domains are not new for Chinese, where were they busy last decade. why they didn't notice the value in them. just a few internet articles and over budget sales of chips and here we are. Boooooom. In simple words, the sales of those chip's were Ponzi scheme.
     
  17. wwwweb

    wwwweb Top Contributor VIP ★★★★★★★★★★

    Posts:
    11,521
    Likes Received:
    11,438
    Why do you think people who bought these things for $10-100 were quickly selling for $2,000-$2,500, because they knew how many inquiries these things got after years of holding them, zilch.

    It was a gift, many Chinese wannabe domainers got left holding the bag on domains that now command about $800.
     
    Last edited: Oct 16, 2017
  18. Kate

    Kate Domainosaurus Rex VIP ★★★★★★★★★★

    Posts:
    21,115
    Likes Received:
    22,512
    It's still a lot of money. I mean, they could come down even further. Random LLLL.com were worth $40 not so long ago.
     
  19. Chris Hydrick

    Chris Hydrick ChrisHydrick.com VIP

    Posts:
    6,223
    Likes Received:
    9,408
    MarketCap has dropped from $400 million ($2500 each) to $128 million ($800 each) apprx 68% decrease

    At $40 each, it'd only cost $6.4 million to complete a full buyout of all 4L.com CHIPS.
     
  20. Shams

    Shams Will update soon VIP

    Posts:
    1,768
    Likes Received:
    716
    i bought 85 4L .com in 1 day from Godaddy auction at $10 each.:xf.wink:
     
  21. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

    Posts:
    11,039
    Likes Received:
    12,871
    the P&D wasn't so much with 4 letters, it was everything after 4 letter.com

    like 4 letter .info with BBCC patterns, then 5 letters .mobi, then 6 letters and so on


    if you already owned chinesepremium.com before chinesepremium.com became chips, then it's still all gravy

    imo...
     
  22. Chris Hydrick

    Chris Hydrick ChrisHydrick.com VIP

    Posts:
    6,223
    Likes Received:
    9,408
    Do you know enough to say and/or think 5N, 6N, 7N were P&D? Or do you see actual value in 6N.com?
    Just realized the 13th most popular website today according to Alexa.com, Twitter.com started on a 5L.com CHIP Twttr.com (an ABAAC.com as the CHIP investors would call it)

    upload_2017-10-17_3-8-7.png

    About six months after launching on Twttr.com, they rebranded to Twitter.com. Less than a year later, they received a $5 million dollar series A investment as Twitter.

    How were/are random short domains without A,E,I,O,U,V supposed to legitimately fetch a baseline value of liquidity given their annual liability? Why now all of a sudden? If supply and demand is the rational:

    4L.com CHIPS at 160,000 total carries an annual renewal liability of $1.6 million at $10 per renewal.
    5L.com CHIPS at 3,200,000 total carries an annual renewal liability of $32 million at $10 per renewal.
    5N.com at 100,000 total carries an annual renewal liability of $1 million at $10 per renewal
    6N.com at 1,000,000 total carries an annual renewal liability of $10 million at $10 per renewal

    What am I missing?
     
    Last edited: Oct 17, 2017
  23. dordomai

    dordomai Top Contributor VIP

    Posts:
    2,581
    Likes Received:
    3,111
    bags.com is a 4L as scam.com
     
    Last edited: Oct 17, 2017
  24. Chris Hydrick

    Chris Hydrick ChrisHydrick.com VIP

    Posts:
    6,223
    Likes Received:
    9,408
    ???
    Those are dictionary words, and since they contain a vowel, are not part of the 160,000 4L CHIPS.

    456,974 total 4L.com.
    160,000 4L CHIPS (Only 32 english words)
    296,974 non CHIP 4L.com (How many english words?)

    I don't know Chinese. Maybe that's the reason why I can't pronounce Cyxf.com (recently reported on NameJet for $2200...)
    [Click View All Bids] http://www.namejet.com/Pages/Auctions/StandardDetails.aspx?auctionid=3974464

    upload_2017-10-17_4-34-26.png
     
    Last edited: Oct 17, 2017
  25. dordomai

    dordomai Top Contributor VIP

    Posts:
    2,581
    Likes Received:
    3,111
    I meant bags and scam are 4L, does this tell us something?
     

Want to reply or ask your own question?

It only takes a minute to sign up – and it's free!
Topics / Tags:
biix
  1. NamePros uses cookies and similar technologies. By using this site, you are agreeing to our privacy policy, terms, and use of cookies.
    Dismiss Notice
Loading...