Garbage in - Garbage out! Chips crashing

[Recons.Com]

So, where do we start?!

Well, for the beginners, why don't you have a look at the attached screenshot?

The so called Chinese Premium letter 4L.com are at the lowest for last 90 days and this time no excuse of Chinese new year.

This so called big Chinese investors have zero interest in playing it decent.

After grabbing tens of thousands names at $20-200, they pumped it to 3,000$ then lost interest in it letting it to crash to $1,800$ and counting, they, like bunch of locusts, moved to other asset classes for new pump and dumps, including 2-3-4 L, N .ws, 5L, 7N. They did not care how much they hurt 4L.com chips by starting new rumor of LNQRP being semi-premium (the whole point of premium is not being semi-premium), as long as they could bring some value to first 15 letters they could buyout first, now they need more suckers to grab those unwanted letter domains, about 350,000 remaining and once they'll find them (and they will find them), they'll pump up the prices, sell the premiumer ones they hold (patterns, 15 uber premiums etc.), then the locusts are off to the next field and you can hold your babies.

 

[rocky123]

Hi,
Great Insight but don't you think If 4l.com chips do crashes, it'll have a ripple effect across the whole chinese domain industry ? .Moving to a next field might become difficult then

 

[alcy]

well I'm sure it was fun while it lasted.. as always those who unloaded on time.. made money.. probably a few new millionaires aroudn too from it! lucky yous!

looks like prices going down on llllsales.com

anyway you look at it.. as I always said and many others too, it could never hold at 3k. its beyond ridiculous. I hope non chip 4l.com stabilize around 1k floor this year.. and non westerns with letters no one should want, return to their rightful plavce which is lower than western 4l.

 

[Recons.Com]

They don't care about ripples.

It is about narrative. First narrative was Chips to $3K-10K, then 5L = that divided by 20 (which is flawed in itself), accordingly they will sell easily for $150-500. No end user needed, they are bitcoins...

Now new narrative is 5L.coms are decoupled from 4L.com, who cares how much 4L.com are. They are too few and too expensive. Buy 5L.com just for $2-7 depending on promo you have, you'll increase your money by tenfold by September.

In the meanwhile, they are already trading some "premium" patterns, the first 15 letters they selected as prem etc. And the crowd follows as sheep not questioning why this LNQRP thing surfaced just about couple of weeks ago.

When they'll decide to move to next asset class (once they sell of their holding or sell enough to cover the basis and make great return), they'll get together, decide what to buy and which classes, then they will decide on narrative on masses, find couple of talking heads for western forums and you are all set... Well, they are all set...

 

[Lionel Cohen]

From my own in depth research a very large part of 4L are held by Chinese holders and many by big investors. So, Who are the "they"?

 

[Recons.Com]

Those holders could be part of few groups:

- Got caught up on the way up, bought closer to peak, now don't want to sell at $1,800 hoping for rebound. Remember this is not China against West. This is group of Chinese that will first and foremost engage their own countrymen.
- Bought 100 names at average of $100 for about $10K, sold about 20 at average of $2.5K, made 40K$ net profit, still has 80 names, doesn't mind holding them/was hoping for further increase.
- Has too many of those, made a lot of money already, can't release the names to market, as that would certainly crash it in short term. Has to either keep them or do slow exit.

So, "they" is domainer-investor group that have colluded to play the market and other domainer-investors that know how to ride the waves...

 

[3sixty]

Fully agreed with Recons here. Names with meaning will always have meaning. That is the key. If you have a 4L make sure it has a solid meaning behind it. If you can't find a million dollar acronym behind it or can't match it to a strong brand then forget it. Because chances are when you find out about the pump it is already too late. The big players will always move in silence.

I say the above as a general business practice on all industries. Quality over Everything.

 

[decades80]

Recons I would just partially agree with you about letter CHIPs which looks odd and are hard to spell. But you should not put the NNNNN... into the pot. Those are far more "friendly" for Western collectors that random kqqzw.com will ever be. Dont you forget that

 

[Recons.Com]

Do you mean Numbers by NNNNN? 5N are great, actually. The least they can be used for is zip codes, six can be fine with patterns, 7 without very easy pattern is useless, unless it is your exact phone number or something )

I have few 7N, but they are all ABCBCBC pattern, as easy as remembering ABC.

 

[mhdoc]

But you should not put the NNNNN... into the pot. Those are far more "friendly" for Western collectors that random kqqzw.com will ever be. Dont you forget that

When I put on my developer hat I have a really hard time seeing what I could use a five number domain for unless it was a zipcode match.

I collected several three character domains in the old days because "everyone" said short was good. I never have been able to figure out what to do with them.

 

[decades80]

Yes I ment patterns not a random CHIPs. 7391125 or sth like that.

 

[Recons.Com]

That is not still an easy pattern... I mean something like 5001133 or 8454545

 

[decades80]

Yes exactly. It should be easy to remember. I just gave an example of bad name (CHIP)

And you are right, with the right combinations, there is actually no need for the buyout, so nice looking patterns would form a price range. Look at a dictionary 1 word English word with 8 letters as 1 combination. Does a 8 letter dictionary word need a complete buyout in LLLLLLLL.com zone to gain price?

 

[bytedo]

When I put on my developer hat I have a really hard time seeing what I could use a five number domain for unless it was a zipcode match.

I collected several three character domains in the old days because "everyone" said short was good. I never have been able to figure out what to do with them.

i`d gladly take them off you. Thanks

 

[Recons.Com]

When I put on my developer hat I have a really hard time seeing what I could use a five number domain for unless it was a zipcode match.

I collected several three character domains in the old days because "everyone" said short was good. I never have been able to figure out what to do with them.

Depends on 3 characters. If it is something like Gr8, that is a jackpot ) or B4U, L8R, or country plus number (have UK9.com, sounds also like uCanine)... Normally, you can do something with it, if you are creative. I have 4-J.com, bought 4-Joy.com to go with it and it is going to be a Renovation services provider eventually.

 

[artstar]

great info recons!

the big thing is there is no way this all could be sustained.

as mentioned who is / was/ were buying all these domains and why plus how could so many tlds and number and letter length and combos domains find owners?

when I saw 7n, 8n, 9n + coms being regged daily in the fall I knew this was going to end badly for those who just jumped in for the ride.

short relevant coms, net, info org co. xyz club, online, tech and more will best imo. the rest is the bastion for the desperate to get into the market hoping some one will buy them based on the trend and not the actual potential useage

make sense?

 

[betthelot]

With all assets they never increase in value in a straight line. Its the trend over at least 3 years you need to measure if you are a long term investor. Short term investing is always going to be volatile.

 

[Recons.Com]

great info recons!

the big thing is there is no way this all could be sustained.

as mentioned who is / was/ were buying all these domains and why plus how could so many tlds and number and letter length and combos domains find owners?

when I saw 7n, 8n, 9n + coms being regged daily in the fall I knew this was going to end badly for those who just jumped in for the ride.

short relevant coms, net, info org xyz club, online, tech and more will best imo. the rest is the bastion for the desperate to get into the market hoping some one will buy them based on the trend and not the actual potential useage

make sense?

Absolutely!

They had me for couple of weeks back in Nov-Dec believing the narrative that 4L.com is not about end users, it is about keeping the money away from the banks/government. But then, again, all their actions reminded of locusts. One field depleted, off to the other one. Each next step made less and less sense. 4L.nets for 1/4 of 4L.com chips and double the price of good pronounceable 4L.com! Depleted, dropped 2 times in time, buyout of 4L.org, 4L.biz, 4L.co, 4L.info (who needs 4L.info random chips???), 4L.ws (!!!!!! - about thousand of those here) etc, etc.

Plus 7N-10N.com, plus 5L.com and then new narrative with 5L.com 15 letters, bitcoin comparisons (bitcoins don't have renewals, 3%-20% transaction costs, bad combos etc.) etc.

And "the talking heads" (you know who you are) got more and more irritating. It is very distracting from business itself, although, I must admit, I have had much less competition for good names and did restock very well during the craze.

As W.Buffet suggested, always do the opposite of what the crowd does...

 

[Recons.Com]

With all assets they never increase in value in a straight line. Its the trend over at least 3 years you need to measure if you are a long term investor. Short term investing is always going to be volatile.

This was not volatile, this was artificial and non-sustainable.

If an asset goes from zero to $100 in best case in 25 years and then to $3,000 in 6 months and to $1,800 in next 3 months, there is nothing volatile about it, just manipulation, bubble etc.

 

[betthelot]

Each next step made less and less sense. 4L.nets for 1/4 of 4L.com chips and double the price of good pronounceable 4L.com! Depleted, dropped 2 times in time, buyout of 4L.org, 4L.biz, 4L.co, 4L.info (who needs 4L.info random chips???), 4L.ws (!!!!!! - about thousand of those here) etc, etc.
Plus 7N-10N.com, plus 5L.com and then new narrative with 5L.com 15 letters, bitcoin comparisons (bitcoins don't have renewals, 3%-20% transaction costs, bad combos etc.)
.

Every domain sector has to be under pinned by enduser demand, prices they are willing to pay and development. The old boring business model. So many times in history we hear of a new paradigm, a new way of valuing an asset and its always failed. Saying that there is enduser demand for 4L.coms the other crap you mention is pure casino gambling.

 

[betthelot]

.WS is looking like hype at this time....

 

[Recons.Com]

Well, good pronounceable and/or good acronym 4L do have lots of end users.

4L.org western premiums also have lots of end users, that is why I ignored the rest of the stuff and stuck to those categories mainly. Even sold 2 4L.coms that turned out to be Chinese Prem (I liked them for diff reason), kept just one (DNMZ -> DomainNameMarketZone for own development)

 

[betthelot]

Well, good pronounceable and/or good acronym 4L do have lots of end users.

4L.org western premiums also have lots of end users, that is why I ignored the rest of the stuff and stuck to those categories mainly. Even sold 2 4L.coms that turned out to be Chinese Prem (I liked them for diff reason), kept just one (DNMZ -> DomainNameMarketZone for own development)

agreed. Thats the grounded realist approach. No quick rich scheme, steady well thought out strategy based on experience and data. I still think long term 4L.coms of any combination will rise over time and have a good return when you look back in 5 years time. At this point I think 1 and 2 word .coms are a better investment though, going forward.

 

[artstar]

the max i went was 5n dot co and i feel it may be an iffy investment still especially with this zero and 4 hoopla started by gawd knows who.

i never heard of chips until the fall of 2015 or zero and 4 being bad numbers as well.

market manipulation in domaining is obvious just like stocks and with the big $ and international appeal and useage its a haven for certain activity the honest person cannot envision

 

[Recons.Com]

agreed. Thats the grounded realist approach. No quick rich scheme, steady well thought out strategy based on experience and data. I still think long term 4L.coms of any combination will rise over time and have a good return when you look back in 5 years time. At this point I think 1 and 2 word .coms are a better investment though, going forward.

Surprisingly, great 1 word ones don't perform exceptionally well, unless it is top 500 word or something.

I learned it with Manslaughter.com. It is perfect for anyone in legal area, everything you might want from it:

Singular, positive meaning (as opposed to murder, people seek manslaughter designation as that would imply either involuntary or voluntary in self defense), over 40,000 exact searches in US only, very high CPC, all is needed is put a directory page of all attorneys in the field for each area, plus relevant state laws, blog articles on the subject and some seo and you can get good money forever. But all I got in almost a year were lowball offers )

Will probably just develop myself.