Pump & Dump Domains

[LucidDomains]

I had a weird thought this morning that the certain entities in China are doing a pump and dump scheme. Stock markets, Forex, Bitcoins are all heavily manipulated markets by those with great wealth.

Could it be possible to do that with 4L-5L, 6N-8N domains? Or perhaps what we're seeing it normal, a natural progression of the market.

Anyone thought along the same lines? Or am I comparing apples and oranges?

 

[Constantin S]

To do this with domains is very hard, because:
1. Domains are expiring after 1 year, is not something you can buy today and tomorrow sell it (like bitcoin), of course you can close it, but why would you do that?
2. Domains will only get more and more expensive as more people gets online, ESPECIALLY .com's.

 

[xinxiaoxian]

5L COM It's almost gone

In China. Will be able to grab the money

 

[80-20]

All investment is risky; especially, if the investor has limited resources.
As is in my case.

That's why I'm taking calculated risks.
Looking around, listening, reading and reading some more...
And buying some China-targeted names.

 

[Bayu]

I was active in the altcoin (cryptocurrencies other than bitcoin) market last year so I've seen many pump and dumps. With altcoins, you can pump for a few days, and dump everything you have in minutes. Sometimes pump and dump even finished in one day.

With domains, pumping is fairly easy, even though it might take a long time. But dumping isn't easy. Selling domains in aftermarket isn't an automated process. There are many things involved in it. Negotiation, transferring payment, pushing the domains, etc. Even worse, quite often buyer simply disappear after reaching price agreement

So if this is a pump and dump scheme, how will they dump?

 

[Constantin S]

I was active in the altcoin (cryptocurrencies other than bitcoin) market last year so I've seen many pump and dumps. With altcoins, you can pump for a few days, and dump everything you have in minutes. Sometimes pump and dump even finished in one day.

With domains, pumping is fairly easy, even though it might take a long time. But dumping isn't easy. Selling domains in aftermarket isn't an automated process. There are many things involved in it. Negotiation, transferring payment, pushing the domains, etc. Even worse, quite often buyer simply disappear after reaching price agreement

So if this is a pump and dump scheme, how will they dump?

Only way to dump is if everybody who hand-reg domains will request refund ) or if most of them will let domains drop next year (but I'm sure within maximum 1 month any good domain will be hand-reg again and better ones get catch by dropcatchers, so I won't really call it a dump)

 

[Asfas1000]

Very good points by Bayu.

Personally I know of a few markets that can be manipulated. All it takes is someone with deep pockets. The crowd is never too sophisticated to react intelligently.

Bottom line, the fat wallet always wins.

But I don't think it can be applied to domains, they are not that easy to liquidate.

 

[JayJay]

Only way to dump is if everybody who hand-reg domains will request refund ) or if most of them will let domains drop next year (but I'm sure within maximum 1 month any good domain will be hand-reg again and better ones get catch by dropcatchers, so I won't really call it a dump)

The dump in this case is the same as what happens with a penny stock, the reason its a pump and dump is because the noobs with some spending money that believe $1300 is still a good deal to buy in at since they are being told (the pump) prices will go over 2k shortly. If prices suddenly drop when demand disappears from China the noob will be holding the bag with their $1300 domain now only worth $200-$300. Thats a huge loss for almost anyone to bear so they end up having to dump at $200-300 in fear it will go even lower eventually.

Not saying that this will happen of course, but its a possibility as with anything that inflates quickly.

 

[GravityEleven]

Not going to happen anymore, too many players are joining this game from several areas in the world, bringing too much money in to circulate around.. plus it's not like all chineses think the same and decide on the same timeframe to exit quickly.. nope.. only exception would be a government action/ban/limitation..

 

[Constantin S]

Who thinks there will be a dump they should remember what we're the price for LLL.com's and LLLL.com's at the beginning of 2014.

 

[domeen]

it will happen, not sure when and how much they will fall.

 

[Recons.Com]

Could be...
Think about it. Someone or group of people/companies have extra 2 million to invest. They come with the scheme to register 200K of available 6N dot com (of course, with "better" pattern) and also spread the legends that somehow Chinese make sense out of 6 digit numbers and maybe even talk in numbers.

They know people monitor the number of registrations across sectors, so many people realize there is something is going on and want to jump onto the train. So let's say 10 000 people buy an average of 70-80 6N to complete the scoop. Once the buyout is complete, now people want to buy second hand so now there is a floor and even higher one for "better" pattern.

Now all they have to do is carefully manage the sale of the inventory at average of $200-400 (mind you, they have the better pattern ones) not to crash the market just yet and maybe even manage the non-renewed ones if they still have big inventory in the hands left. So, they need to sell around 7K of the names to renew, another 7K to pay for the original acquisition and 7K more for 100% profit on the invested $2 million. And they still have around 180K names worth on paper around $60 million.

 

[GravityEleven]

Guys, please.. ever checked WHOIS of a lot of niche domains (LLLL, numericals etc.)? lots of different chinese users, plus if you were a bit versed in chinese you could see the dozens of chinese domain bidding pages springing up where uneducated users are educated and shown how to invest in domains.. lots of chineses try that now after turning their backs to the stock market

 

[domeen]

see the dozens of chinese domain bidding pages springing up where uneducated users are educated and shown how to invest in domains.. lots of chineses try that now after turning their backs to the stock market

and you don´t see any problem here?

 

[GravityEleven]

i do see a potential problem in the mid to long term future but as long as you know how to play the game and when to exit it is a big chance for many educated people here to make really big bucks while all the keyword / exact match / brandable sellers sit on their inventory.. i am not looking to let this chance slip past..
of course, everyone has to invest at their own risk and do the neccessary research first..

 

[domeen]

its not ok, Chinese auction houses recruit new customers "victims". All say, register, buy, they are cheap
I mean even in this forum idiots say that it will never fall, it can only go up. There is no problem.

being in this business for 15 years and I tell you, this prices are not reality. It can not continue and end well.

I am telling you in China avarege housewife, taxi driver is investing into domains! THAT IS BAD SIGN. Thats not good sign.

I mean they all invested into stock market, and looks what it did.

If you really think they are just collecting them and don´t want to make money. Thats sad.

 

[GravityEleven]

i got some info that you may not have, that's all i am gonna say for now.. not enough time to keep discussing here, got to go buy up more gems to push towards the chineses

Ps: but respecting your opinion, no worries

 

[domeen]

i got some info that you may not have, that's all i am gonna say for now.. not enough time to keep discussing here, got to go buy up more gems to push towards the chineses

Ps: but respecting your opinion, no worries

for sure, you have found new way to make money in this business. In year 2015. no problem. Keep investing and pushing

 

[5dots]

I believe that domains with no commercial use must fall in price one day. The same like with stocks of a company not making any money.
Right now the market is a self fulfilling prophecy. Investors (often with little market knowledge) buy as the mentioned combinations are getting rare.

And even the dump can be quick. If renewal comes and the domain is not even worth that money.

 

[Recons.Com]

Guys, please.. ever checked WHOIS of a lot of niche domains (LLLL, numericals etc.)? lots of different chinese users, plus if you were a bit versed in chinese you could see the dozens of chinese domain bidding pages springing up where uneducated users are educated and shown how to invest in domains.. lots of chineses try that now after turning their backs to the stock market

Why would they show that it is the same group? Domain regs are easy, you can create 1000 accounts, nobody checks/verifies your identity.