The short domain market is ridiculously small compared to other asset classes so sure, it is considerably more prone to volatility. If someone wants to buy let’s say 500 LLLL chips right away for example then needless to say, the price will shoot up aggressively. Supply and demand 101. The same way, of someone wants to sell 500 LLLL chips right away, the downward pressure on chip prices will be humongous.
1) Can they exacerbate the current trend? For sure. So if short domains are in an uptrend and a huge buyer wants to acquire 500 chips quickly, gasoline will be added to the fire and the uptrend can be exacerbated. The same way, if a big chip holder panics and decides to flood the market with 500 chips during a downtrend, the downtrend will be exacerbated to the downside.
Read MoreA lot of domainers might think that and some of the big players are probably delusional enough to agree with them but market forces can humiliate even the most well-funded player. Even in cottage industries such as domaining, the market always speaks and sustainably altering the trend is faaaaar easier said than done..
