news Chinese Pump and Dump, Zhuang Jia

[JudgeMind]

Interesting article I found on domain name wire. A good read with good insight into the culture of trading in China.

An article just published by Bloomberg gives us an x-ray glimpse into a Chinese investment culture reliant on pump-and-dump schemes. The parallels with domain market activity during 2015 are so obvious that even this sentence feels a bit redundant.

A Shanghai accountant sums it all up:

" If you want to make a quick buck from the stock market, you’d better look for stocks with manipulators … You just need to pull out faster than them.​

http://domainnamewire.com/2015/12/31/zhuang-jia-chinese-pump-and-dump/

 

[GoWeb]

FRESH TODAY:

CHINESE STOCK MARKETS fall 7%, Hit Lower Circuit, Closed (This is DUMPING)

http://timesofindia.indiatimes.com/...-after-shares-fall-7/articleshow/50436953.cms

Now think what will happen to you when your chips bought at $2000+ each end up at $200 each!!

 

[theSun]

for me thats complete BS

1) domains are no stocks
2) every domain is different
3) there are no real time charts
- the existing charts are not reliable because the timeline is not correct
- I bought 4l.com and the transfer was completed only after weeks and only then reported
- this spoils any statistics
4) you can't dump them, as you need a buyer first
-if you sell to cheap, you only hurt yourself
-if you pay to much, you only hurt yourself

5) short .com domains will always be valuable as long as the domain system exists

Great minds think alike. Stocks market fall = Domain market rise. The greater stock market falls, the stronger the domain market rises. CHIPS = King. Period. Tekz999's Believe It Or Not.

 

[168]

Good read and always insightful to see things from other angles but anyone who thinks the Chinese are in this for a pump and dump, does not understand what is going on.

If all chips were selling equally I could see how on one could draw that conclusion, however some chips in various extensions are going for over 10X more than randoms depending on translations, etc. Theres no way they'll ever make their money back because westerners rarely pay over the floor price for randoms. Is manipulating occurring with certain extensions and niches? YES! But 5L.com and lower is safe. Same for 6N.com and lower. All safe investments. 5L will be unstable and unpredictable for a while but will eventually be liquid. Heck I saw a Chinese buyer spend $199 on a .biz 4L chip last week.... You wouldn't catch an NP'er paying $30 for the same chip... No way its a pump and dump.

Lastly, every time I see comparisons involving bitcoin it makes me cringe a bit because its apples and oranges. If people take time to understand to their culture, research the buyouts, read their forums and stop listening to all these so called experts and come to their own conclusion.... They'd realize the Chinese are in this for long haul.

I can find something to support any angle or argument online. Any Joe Blow can write a blog post. Stop listening the propaganda and follow the money!

I'd like to repeat,
If people take time to understand to their culture, research the buyouts, read their forums and stop listening to all these so called experts and come to their own conclusion.... They'd realize the Chinese are in this for long haul.

 

[The New Guy]

I'd like to repeat,
If people take time to understand to their culture, research the buyouts, read their forums and stop listening to all these so called experts and come to their own conclusion.... They'd realize the Chinese are in this for long haul.

Sure they are. Just ask all the Tibetan mastiffs in china that were once worth hundreds of thousands only to be abandoned once the fad ended.

Ooops. You can't ask them - they've been sent to the slaughterhouse.

 

[1john2004]

Sure they are. Just ask all the Tibetan mastiffs in china that were once worth hundreds of thousands only to be abandoned once the fad ended.

Ooops. You can't ask them - they've been sent to the slaughterhouse.

and where I can find all those abandoned domains? I am interested in buying them all

 

[Billy Wagner]

I'd like to repeat,
If people take time to understand to their culture, research the buyouts, read their forums and stop listening to all these so called experts and come to their own conclusion.... They'd realize the Chinese are in this for long haul.

That's exactly what they want you to think.

 

[168]

Your comparing dogs to digital domain property?
No question pump and dump is going on everywhere.
Stats you should pay attention to,
The chinese middle class is twice the size of america.
It's the middle class in both markets and globally, that are investing in domains.
What we have today is an investor pool 3x the hisorical figures in an established market.
Both markets need inventory. All markets agree .com is liquid, globally.
The preference for numbers created a market class that didn't exist.
Numbers are a preferred form of communication. Communication is huge in itself !
The internet is not going away anytime soon. Domains are an integral component.
Less than half of the globe has access. While population is not useful for projections,
it is useful to get a perspective on the growth of the market up to today, and reasonable assumptions
short term.
What has also changed is the number of properties held by corporations and companies, globally.
Investment portfolios are also being created like never before. Here's a first, REITS are in the digital domain property future !

 

[abcproductions]

As an RIA with 20 years of domain investment experience, I predict, in 2016 there will be record-setting investments in domain names from China, U.S., Australia, and most European countries. Investment will come from large int'l corps to speculating individual investors, and millions of smart small-to-medium-size businesses in between.

WHAT TO WATCH IN 2016: The largest advertising and marketing companies from around the world will become large domain portfolio owners as they invest heavily in domains to fulfill their clients' current and future needs.

 

[Nanda Dianto]

Pumping and Dumping scheme is not good for long term. Just like Altcoins for example. If it's domain, stay with english words if you want to stay longer. Money is hard to earn, easy to lose. No problem if you can handle the stress taking big risk. I have seen it all my life, dumping and pumping in stocks trading. Authority just suspend the stocks. Your money will get stuck.

 

[Acroplex]

There are two circles to observe: the Chinese trading locally among themselves, and the Westerners watching the Chinese trade (and trading among themselves as an investment.)

The first week at the Chinese stock market has been brutal. Trading has been cancelled for two days due to huge losses. Nobody knows for sure how this will affect domain valuation of the infamous "chips."

Corporate buys e.g. LL .com domains by the Chinese are unrelated to the rest of the token domains (NNNN/LLLL/6N etc.) being traded among stock market players. The big money is spent by corporations for matching .com brands, short or not.

Be careful, and never put all your eggs in the same basket.

 

[frank-germany]

Be careful, and never put all your eggs in the same basket.

this basket is called Domains

when crash .. buy stocks?

----------------
no advice...

 

[Acroplex]

this basket is called Domains

when crash .. buy stocks?

If all one does is trade "chips," they don't diversify enough. A lot of domainers get drawn into the Chinese domain market assuming endless wealth. When there's an up, there will be a down.

 

[frank-germany]

When there's an up, there will be a down.

yes and 3 letter .com will be at 1.500 K then,
so better get rid of them now

pass them to me

 

[DaveX]

There are two circles to observe: the Chinese trading locally among themselves, and the Westerners watching the Chinese trade (and trading among themselves as an investment.)

The first week at the Chinese stock market has been brutal. Trading has been cancelled for two days due to huge losses. Nobody knows for sure how this will affect domain valuation of the infamous "chips."

Corporate buys e.g. LL .com domains by the Chinese are unrelated to the rest of the token domains (NNNN/LLLL/6N etc.) being traded among stock market players. The big money is spent by corporations for matching .com brands, short or not.

Be careful, and never put all your eggs in the same basket.

Excellent analysis.

 

[Casey L]

Insightful article, although there is a large discrepancy between securities and domain names. Domain names can certainly be pumped and dumped, which is a risk all of us domainers face with the influx of Chinese interest. The stock market, however, seldom experiences these types of inefficiencies because traders are able to exploit them almost instantly. I work in equity research, and we sell (extremely hard-earned) research to firms who invest accordingly. Conversely, any arbitrage opportunities that present themselves in the market are immediately exploited by high-frequency traders in a matter of fractional seconds via algorithms and other complicated means.

Overall, I think the domain name market moves slow enough where we can all enjoy profits until the eventual day that it all ends. In theory, how long can arbitrary LLLL.com rise exponentially in price if there are almost half-a-million permutations? I see it as a slow-motion game of hot potato, where one day (be it in one year or one hundred years) there will be no more value. It's like New York City real estate; it's been growing for two-hundred years, but one day it will be underwater

 

[djum]

I play the stock market and see this all the time

Confirmed. In 2009-2011 there was big playground with Chinese reverse mergers.

 

[djum]

immediately exploited by high-frequency traders in a matter of fractional seconds via algorithms and other complicated means.

simply called robots