auctions GoDaddy Expired Auctions can be tricked

[Furquan]

Twitter user and Chinese domain investor posted that Godaddy Auctions allows people to use two bidder accounts on the same name and a lot of people are using it for tricking the auctions.
 

https://twitter.com/i/web/status/1678228128194256896

 

 

[dr manos]

LETT.com just instantly skyrocketed from $50 to $23,000 with 10days left in auction. I looked, and sure enough it was only two bidders.

2 bidders are not enough, if for example first bids $20 and 2nd $10k price will be eg $25, need a third faker to bid high and throw away the real bidders

 

[pb]

2 bidders are not enough, if for eample first bids $20 and 2nd $10k price will be eg $25, need a third faker to bid high and throw away the real bidders

of course it's enough, they just outbid each other in turns

 

[dr manos]

of course it's enough, they just outbid each other in turns

no it is not, they want to buy the name with $25 not with $10k, if outbid each other and first goes to 9900 and 2nd to 10k what is the meaning. I followed such auctions, all were with same pattern, every time were 3, first bid very early the minimum, the 2 others outbided each other high, no payment from last 2 and name awarded to first bidder.

 

[dr manos]

These are GoDaddy expired auctions, so commissions are not involved.

Brad

Correct and also at the trick they make bidder of $30k would not pay in order name to go to parner bidder with the low bid

 

[dr manos]

I just contacted with godaddy support and they said 2nd bidder will be asked for the bid amount he placed before.

Of course this measure would stop the trick but on the other hand, generally speaking for any auction platform, first bidder (with the higher bid but who does not pay at the end) can be a platform employee in order to drive the auction high, global auction rule is if someone does not pay to assume all his bids void.

 

[Jannes]

This kind of shill bidding is possible because Godaddy's automation allows almost instantaneous skyrocketing. So why hasn't GoDaddy set a minimum interval between bids?

 

[pb]

no it is not, they want to buy the name with $25 not with $10k, if outbid each other and first goes to 9900 and 2nd to 10k what is the meaning. I followed such auctions, all were with same pattern, every time were 3, first bid very early the minimum, the 2 others outbided each other high, no payment from last 2 and name awarded to first bidder.

ah, so you mean they've already gamed the new system, why am I not surprised

 

[scithe]

I wonder if the people doing it are taunting us. Google translate wasn't sure about these names...

	pafiboyolali.org​	145​	12​	Less than $100​	$52,999 *​	USD$​	4D 16H​
​			pafiwonogiri.org​	97​	22​	Less than $100​	$39,880 *​	USD$​	4D 17H​
​			pafisukoharjo.org​	34​	91​	Less than $100​	$39,500 *​	USD$​	4D 14H​
​			pafisragen.org​	34​	36​	$108​	$36,250 *​	USD$​	4D 14H​
​			pafiklaten.org​	34​	91​	Less than $100​	$36,000 *​	USD$​	4D 13H​
​			pafikotajambi.org​	37​	63​	Less than $100​	$36,000 *​	USD$​	4D 12H​

 

[silentg]

I wonder if the people doing it are taunting us. Google translate wasn't sure about these names...

SEO guys bidding it up. Checked couple of the domains listed and they got around 40+ DR

 

[scithe]

I wonder if Namecheap was looking at this thread? I just received this e-mail...

​

Domain Auctions updates​ Hi Nicholas, To make sure the Marketplace remains a trusted platform, and to ensure that each auction is conducted fairly, we have introduced the following changes: •​ User Badges: giving you confidence that you’re bidding against real users with records of auction participation.​ •​ Removing Runner-up option: reducing cases of improper bidding practices.​ What are User Badges?​ You should feel confident that you’re bidding against real users, and by showing you their history, you can now validate their legitimacy yourself. User Badges appear next to bidder IDs in each listing’s Bid History section. The badge tiers are Bronze, Silver, Gold, and Platinum, which are based on the number of domains won from auctions and total amount spent. To know even more about the bidders you’re up against, hover over their User Badge. You’ll see their revenue tier, win count, and join date. Learn more about User Badges in our Auctions Bidding Guide. Why have we removed the runner-up option?​ To maintain our platform’s fair approach to Auctions, we no longer offer unpaid auctions to second-place bidders. Now, the domain will be re-auctioned instead of automatically being offered to the runner-up. This removes cases where one user has multiple accounts and places both the winning and runner-up bid, then uses the runner-up account to get a domain with a lower bid. The runner-up option will still be offered in some rare cases, like registry premium listings with high renewal fees. But these auctions will be closely monitored to avoid any abusive behavior. At Namecheap, we always strive to ensure that Marketplace Auctions remain a trusted, transparent, and fair platform for all our users. We are committed to continually improving the integrity of our marketplace, and plan to release additional verifications for new users by Q4 2023. When we know the exact launch date we will let you know.​

 

[bmugford]

I wonder if Namecheap was looking at this thread? I just received this e-mail...

​

Domain Auctions updates​ Hi Nicholas, To make sure the Marketplace remains a trusted platform, and to ensure that each auction is conducted fairly, we have introduced the following changes: •​ User Badges: giving you confidence that you’re bidding against real users with records of auction participation.​ •​ Removing Runner-up option: reducing cases of improper bidding practices.​ What are User Badges?​ You should feel confident that you’re bidding against real users, and by showing you their history, you can now validate their legitimacy yourself. User Badges appear next to bidder IDs in each listing’s Bid History section. The badge tiers are Bronze, Silver, Gold, and Platinum, which are based on the number of domains won from auctions and total amount spent. To know even more about the bidders you’re up against, hover over their User Badge. You’ll see their revenue tier, win count, and join date. Learn more about User Badges in our Auctions Bidding Guide. Why have we removed the runner-up option?​ To maintain our platform’s fair approach to Auctions, we no longer offer unpaid auctions to second-place bidders. Now, the domain will be re-auctioned instead of automatically being offered to the runner-up. This removes cases where one user has multiple accounts and places both the winning and runner-up bid, then uses the runner-up account to get a domain with a lower bid. The runner-up option will still be offered in some rare cases, like registry premium listings with high renewal fees. But these auctions will be closely monitored to avoid any abusive behavior. At Namecheap, we always strive to ensure that Marketplace Auctions remain a trusted, transparent, and fair platform for all our users. We are committed to continually improving the integrity of our marketplace, and plan to release additional verifications for new users by Q4 2023. When we know the exact launch date we will let you know.​

Quite possibly.

It is good to see changes like this for the sake of transparency.

Meanwhile, @GoDaddy and anyone associated with them have had sparse comments in response to the scheme, nor really addressed anything they are doing to fix it.

I mean does anyone believe all these current GoDaddy bids are actually legitimate?

 

[silentg]

I wonder if Namecheap was looking at this thread? I just received this e-mail...

​

Domain Auctions updates​ Hi Nicholas, To make sure the Marketplace remains a trusted platform, and to ensure that each auction is conducted fairly, we have introduced the following changes: •​ User Badges: giving you confidence that you’re bidding against real users with records of auction participation.​ •​ Removing Runner-up option: reducing cases of improper bidding practices.​ What are User Badges?​ You should feel confident that you’re bidding against real users, and by showing you their history, you can now validate their legitimacy yourself. User Badges appear next to bidder IDs in each listing’s Bid History section. The badge tiers are Bronze, Silver, Gold, and Platinum, which are based on the number of domains won from auctions and total amount spent. To know even more about the bidders you’re up against, hover over their User Badge. You’ll see their revenue tier, win count, and join date. Learn more about User Badges in our Auctions Bidding Guide. Why have we removed the runner-up option?​ To maintain our platform’s fair approach to Auctions, we no longer offer unpaid auctions to second-place bidders. Now, the domain will be re-auctioned instead of automatically being offered to the runner-up. This removes cases where one user has multiple accounts and places both the winning and runner-up bid, then uses the runner-up account to get a domain with a lower bid. The runner-up option will still be offered in some rare cases, like registry premium listings with high renewal fees. But these auctions will be closely monitored to avoid any abusive behavior. At Namecheap, we always strive to ensure that Marketplace Auctions remain a trusted, transparent, and fair platform for all our users. We are committed to continually improving the integrity of our marketplace, and plan to release additional verifications for new users by Q4 2023. When we know the exact launch date we will let you know.​

NameCheap had it's own shill bidding problem: https://www.namepros.com/threads/namecheap-coms-marketplace-questionable-policy.1269402/

 

[bmugford]

NameCheap had it's own shill bidding problem: https://www.namepros.com/threads/namecheap-coms-marketplace-questionable-policy.1269402/

Yep, there will be some level of abuse at every venue.

The scale at GoDaddy is on another level. This is mainly because of their poor system design.

The scheme actually works to get high quality domains for peanuts. When scammers quit being rewarded, the scam will stop.

Also, it is not like we have seen much from GoDaddy to actually address this scheme that has been going on for years now.

In my view, the lack of serious response makes it seem like they are not all that committed to fixing it.

Brad

 

[Michael]

9246.com went from $20,250 to $1,025. Yikes.

e-Skills.com went from $19,250 to $22.
YaPay.com went from $34,000 to $3,906.
B66.com went from $54,000 to $20,050.
22858.com went from $3,301 to $22.
CSEL.com went from $2,125 to $160.
98s.com went from $10,550 to $2,550.
0767.com went from $6,055 to $3,150.
36Q.com went from $3,750 to $95.
TAIS.com went from $15,250 to $368.
Logicify.com went from $9,995 to $117.

Plus lots and lots of SEO names rolled back bigly.

 

[pb]

e-Skills.com went from $19,250 to $22.

We have a new record, wow.
-99.9%

 

[MadAboutDomains]

Not the first shady loophole that those in the know can and did/do use to their advantage.

"But there has been a loophole that has helped people like me. If you place a backorder the second an auction closes, you can win the domain for the cost of a backorder before it gets placed in closeouts."

Quite annoying when people of supposed "high calibre" in the industry reveal their secret little loopholes when it is announced they will be closed like the aforementioned.

 

[BLazeD]

gifsoup.com just closed on Godaddy for $21350. Prior to that, just 2 bidders took it from $100 to $21K. Then a 3rd bidder put a single bid and won it.

Anyone think this third bidder could have ruined their scam?

Is it worth $21K or $100?

 

[silentg]

gifsoup.com just closed on Godaddy for $21350. Prior to that, just 2 bidders took it from $100 to $21K. Then a 3rd bidder put a single bid and won it.

Anyone think this third bidder could have ruined their scam?

Is it worth $21K or $100?

 

[Digital Nomad]

Quite possibly.

It is good to see changes like this for the sake of transparency.

Meanwhile, @GoDaddy and anyone associated with them have had sparse comments in response to the scheme, nor really addressed anything they are doing to fix it.

I mean does anyone believe all these current GoDaddy bids are actually legitimate?

Show attachment 245366

I had the impression that @James Iles would be a "bridge" between us and GoDaddy, but still silent.

 

[bmugford]

I had the impression that @James Iles would be a "bridge" between us and GoDaddy, but still silent.

Yeah, he has only posted on NamePros once since July 10th.

I have seen him tagged multiple times with no response.

To be honest, I was expecting more engagement with the community.

Brad

 

[bmugford]

gifsoup.com just closed on Godaddy for $21350. Prior to that, just 2 bidders took it from $100 to $21K. Then a 3rd bidder put a single bid and won it.

Anyone think this third bidder could have ruined their scam?

Is it worth $21K or $100?

Possibly, but who knows. I think sometimes the scheme involves more than just (2) bidders.

The problem is no one knows if it will sell for $21K or $100.

None of the expired auction results can be trusted at this point IMO.

There have been sparse public comments from GoDaddy, with minor lip service to the problem. However, the issue is only getting worse recently.

The scammers are making thousands, or tens of thousands, on many of these auctions.

It is only possible because of GoDaddy's terrible system design.

All that will be left soon are the fraudulent bidders.

Legitimate bidders are not going to fight over scraps, while the scammers claim so many desirable domains for pennies on the dollar.

Brad

 

[BLazeD]

Show attachment 245575

It has a decent link profile yes. But I am most interested in the bidding history. From only $100 to $21K with two sequential bidders seems highly suspect

 

[Digital Nomad]

@Michael do domains get reported on NameBio after the auction has been paid? So all sales reports are after rollbacks etc.?

 

[Michael]

@Michael do domains get reported on NameBio after the auction has been paid? So all sales reports are after rollbacks etc.?

Depends on the venue. GoDaddy auctions are posted to the live site a matter of minutes after they end, and then we update the record later as more information becomes available. The rollback process seems to take a good bit of time though, days or even weeks.

 

[Digital Nomad]

Depends on the venue. GoDaddy auctions are posted to the live site a matter of minutes after they end, and then we update the record later as more information becomes available. The rollback process seems to take a good bit of time though, days or even weeks.

So most sales reports everyday from godaddy must be taken with a grain of salt and double checked after weeks to be sure. But how do you know when there is a rollback?