discuss Fractal Domain Investing

[News]

From what I understand, Andrew Rosener of Media Options has played a pivotal role in getting domain names added to Rally. This morning in a series of tweets, Rosener commented about why he became involved in the project and the value he expects it to bring to the domain name aftermarket...

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[newshunter]

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Should be interesting to see If, and in case how, this will influence demand in the domain industry.

 

[DigiNames]

This could be the beginning of a big shift in domains. Fractional domain name ownership could unlock the value of many domains without needing to wait for the perfect end user to come along.

 

[capybara]

This could be the beginning of a big shift in domains. Fractional domain name ownership could unlock the value of many domains without needing to wait for the perfect end user to come along.

How is that? I can't see any "unlock" here, but I see how it is going to lock it – after multiple small investors start owning a, lets say, $200 000 domain, who and why is going to pay $1 000 000 for it?

To move the price tag from the acquisition-"wholesale" value to the "retail" value it requires a will of the domain investor who owns it, but collective ownership's hive mind is not capable of doing that, moreso, the nature of collective ownership won't allow any dramatic changes at all (aside from exceptional events like emergence of sudden global trends related to the domain) meaning $200 000 name is going to stay locked at + / - same price level.

 

[DigiNames]

How is that? I can't see any "unlock" here, but I see how it is going to lock it – after multiple small investors start owning a, lets say, $200 000 domain, who and why is going to pay $1 000 000 for it?

To move the price tag from the acquisition-"wholesale" value to the "retail" value it requires a will of the domain investor who owns it, but collective ownership's hive mind is not capable of doing that, moreso, the nature of collective ownership won't allow any dramatic changes at all (aside from exceptional events like emergence of sudden global trends related to the domain) meaning $200 000 name is going to stay locked at + / - same price level.

It unlocks value for the owner of the domain. Fractional “Wholesale” values will move closer and closer to retail prices because the shares will be much more liquid than an entire premium high-value domain. It will bring more money into domain investment.

 

[capybara]

It unlocks value for the owner of the domain. Fractional “Wholesale” values will move closer and closer to retail prices because the shares will be much more liquid than an entire premium high-value domain. It will bring more money into domain investment.

They would be more much more accessible, true, but much more liquid? On NP marketplace, we have a whole category of "liquid domains" but some people keep offering their "liquid domains" for years, with no real liquidity to be found, just the label... and that is because potential buyers don't see enough retail potential, I guess?

More than that, the domain as a whole is going to become far less liquid. So there is a business owner who might be interested...go on a quest buying shares from a number of people for.... you don't even know how long, you can't be sure if you even able to reach the goal in the end but you still have to spend money in the process...sorry but I'll go negotiate for a one-time sure deal, thanks bye – says the [formerly] interested party.

 

[DigiNames]

They would be more much more accessible, true, but much more liquid? On NP marketplace, we have a whole category of "liquid domains" but some people keep offering their "liquid domains" for years, with no real liquidity to be found, just the label... and that is because potential buyers don't see enough retail potential, I guess?

More than that, the domain as a whole is going to become far less liquid. So there is a business owner who might be interested...go on a quest buying shares from a number of people for.... you don't even know how long, you can't be sure if you even able to reach the goal in the end but you still have to spend money in the process...sorry but I'll go negotiate for a one-time sure deal, thanks bye – says the [formerly] interested party.

There must be a mechanism for an end-user to purchase the domain, otherwise the domain would be locked, unusable and would lose its value.

Rally, the app that just fully funded the offer for Directions.com for $140k in a matter of minutes, allows an end-user to make an offer. It must be at a premium over the most recent share-price and active shareholders can vote to accept the offer or not.

 

[capybara]

That sounds a bit better because on their site there is no sensible information about such mechanism and the whole "domain ownership" looks like a ship with no captain. Still the active response vote is not good because someone might block the deal just for whatever reasons, if there was a preliminary vote for a set price / set period of time (like "in 2022, the BIN is 1M, the floor price is 700k, the brokerage to negotiate is NNN, next vote in December 2022").