debate Has the bubble burst ?

[geek80]

Well these are the auctions results yesterday at 4.cn for the so called "CHIPS" .

xnmq.com - 1573 USD
zlhq.com - 1542 USD
qfnq.com - 1631 USD

So has the bubble burst or Am I totally wrong?

Welcome your views on this.

 

[Domain Shane]

All of this fluff is bananas.

The prices are following a similar BTC 'crash' that started in December.

and steadily dropping, as predicted.

Yes, domains are different from Bitcoin in that on their own each one has different metrics that can make them more or less valuable... but this floor price will continue be deflated until all 4L has the same floor.

Expect the prices to continue downward. Sorry to those that spent $2k on a gibberish 4L because it had 'pinyin' letters, but you were warned long ago.

I would not be shocked if these found an $800 - $900 floor, and all 4L's ended up being this price at some point this year.

You had me util "all 4Ls have the same floor". Now you're just making stuff up

 

[DomainVP]

You had me util "all 4Ls have the same floor". Now you're just making stuff up

Well not ALL, I mean the ones that are going for $200 - $300 now will go up and the CHIPs relying on a 'floor' price will come down. That was an unclear generalization on my part, I admit.

 

[Kevin A]

I'd be fine with that. As would everyone in the low end 4l market. Call me old school but having come into domaining initially around 08 the fact that X Q Z W and such are considered premium in any way is something I'm not really comfortable with, at least not yet.

 

[DomainVP]

I'd be fine with that. As would everyone in the low end 4l market. Call me old school but having come into domaining initially around 08 the fact that X Q Z W and such are considered premium in any way is something I'm not really comfortable with, at least not yet.

I can see that. Even when I started these CHIPS were $20 - $30 a piece.

I don't think 4L's will ever see that price again, but there is a lot of room to come down.

 

[S-B]

I partially agree with @Domain Shane. The market is maturing and money is flowing in other directions. There is only so much money in the industry so when 6n.coms pop up, .whatever grows, it takes away value from other areas. He also brings up a good point, those of us with data will always win.

 

[Kevin A]

I really want $600. I won't say exactly what I paid but that would give me a tidy profit means I bought at what seems to have been a high point, and over paid even then. Though it bothers me to have the money tied up so long, I don't need it so I can wait it out. Not that I'm unwilling to take a loss just not willing to yet. Funny, When I stepped away so called Chips were $35 bottom barrel junk. What a difference 7 years or so can make. Though I must admit it's good to be back.

 

[Kevin A]

On second thought it looks like I really stepped out around mid 2014.looking through old posts. Found a relevant one here. From late August 2014

I would urge everyone to hold on to non-prem llll as long as possible, say it loses all its value big deal you lost 25 bucks, but there is a good chance in 5 years from now these will fetch 2K+ even if its a meaningless LLLL

As lll prices keep climbing and less being available llll will rise, it will take a while but it will happen, look what happened to nnnn now vs nnnn 4 years ago.

Also keep in mind, what seems like a meaningless llll to someone might not be so meaningless to someone else.

Take your LLLL's place them on sedo, afternic/gd with make offer set, but wait it out.

 

[Prometheus]

Interesting article about real estate bubble in China:
http://www.reuters.com/article/us-china-economy-property-idUSKCN0W6001

From 2005 to 2011, property prices in China soared, buoyed by ready credit, migration into the cities, and government stimulus measures after the global financial crisis. As developers poured money into new builds and unrelated companies set up property arms, residential housing development as a share of economic output tripled in a decade, until government measures to cool the market ended the frenzy.

 

[betthelot]

No asset or stock, raises in a straight line. It depends on your investing strategy. Short term investing you are subject to volatility, long term investing you are looking more at trends, over at least a year plus and therefore it looks less like a burst and more of a normal correction, that all assets experience.

 

[Kevin A]

No asset or stock, raises in a straight line. It depends on your investing strategy. Short term investing you are subject to volatility, long term investing you are looking more at trends, over at least a year plus and therefore it looks less like a burst and more of a normal correction, that all assets experience.

Great point!

 

[martworld]

What we aren't realizing is the fact that domain names are just like a stock market. One day they go up and next day they can fall ,depending upon demand and supply. For example, if one stock goes down on a particular day, it does not mean that it has lost its value, all it means that the demand for that stock was low on that day so it went down. Same thing applies to domains.

What is happening here the so called "profit booking". Its all natural. People are booking profits so supply is high and demand is low. Hence, fall in prices.

But its also a great chance to buy them at low price.

 

[geek80]

Very interesting and different view points.

 

[900Worldwide]

Seems like the time to start buying in while the prices are dropping assuming price will increase over time.. Four letter domains are definitely under valued imo.

 

[namerav]

Seems like the time to start buying in while the prices are dropping assuming price will increase over time.. Four letter domains are definitely under valued imo.

Agree.

 

[martworld]

It is definitely the time to buy. We wont see these prices for long and they are surely gonna go up from here. So we should be in Buying mode and try to grab as many as our pocket allows.

 

[accent]

At the end of February, LLLLL.com regs were burning $2 Million PER WEEK. That sure looks bullish to me for LLLL.com in the mid-long term. Short Com letter domains are better regarded as segments of a single market. Renewal cost aside they will move in tandem.

 

[hugegrowth]

Imagine the poor end user these days trying to hand reg a short domain name, and not being able to find anything.

Market has definitely pulled back a bit, but as time goes on domains slowly get used and taken by end users, and I think more domain investors will be showing up all the time. It's not like LLLL.com are going back to the $25 level again, there has been a shift up in the past year and right now we're just bouncing around. For Chips, there will probably be more pickiness in terms of what the exact letters and numbers are in the domains, what the pattern is, with the best continuing to be in demand and getting higher prices.

 

[wwwweb]

Imagine the poor end user these days trying to hand reg a short domain name, and not being able to find anything.

Market has definitely pulled back a bit, but as time goes on domains slowly get used and taken by end users, and I think more domain investors will be showing up all the time. It's not like LLLL.com are going back to the $25 level again, there has been a shift up in the past year and right now we're just bouncing around. For Chips, there will probably be more pickiness in terms of what the exact letters and numbers are in the domains, what the pattern is, with the best continuing to be in demand and getting higher prices.

As stated above many times end users were not willing to pay the 4L price, and would go get a hand reg 5L, without alot of that inventory now sitting reserved, it makes it much more difficult to get anything decent in 5L.com. If you guys have any decent 5L in your portfolios, I would suggest reviewing, and increasing the price.

 

[Asfas1000]

If you guys have any decent 5L in your portfolios, I would suggest reviewing, and increasing the price.

How do you define "decent" with regard to LLLLL.com ?

 

[brindle123]

I don't think they or anybody really wants the bubble to pop. If LLLL.com prices come down too far, that will kill their LLLL buyouts in all the other extensions that got bought up.

I would think the registries would step in and start buying LLLL.com's just to keep LLLL sales up in all the other extensions. I think of it like a stock buy back program. The registries are actually buying up portfolios, so I think will see this happen if things go south.