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What do you mean by liquidity?

Labeled as discuss in General Domain Discussion, started by abstractdomainer, Jun 21, 2020

Replies:
9
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320

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What do you mean by liquidity?

  1. I can sell the domain at any time

    6 votes
    42.9%
  2. I can sell the domain at a desired price at any time

    2 votes
    14.3%
  3. I can sell at a minimum price but not desired price

    6 votes
    42.9%
Total: 14 vote(s)
  1. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    Given that we consider some of the premium domain names like say, Chess.com as a liquid domain, I believe, it also depends on how we define liquidity.

    So, my question is, whether liquidity is the price that you would be able to get if you ask for it or is it that you would get a sale but the price may not be what you want.

    For example, Chess.com is appraised at $3 million and it is a liquid domain.

    Would you be able to get $3 million immediately if you ask for it, or you may get $500k immediately but not $3 million(for which you will have to find a buyer which may take anything from a week to several months) given that it is a liquid domain, or is it just that you would get a sale and price is not a factor here?
     
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  2. AEProgram

    AEProgram Top Contributor VIP Blue Account

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    A liquid name to means a name that you can sell instantly at some price even at a fraction of a price you could have gotten if you took the time to market it.

    Chess.com could be sold and closed today for high 5 figures - low 6 figures, that is liquid even if it means you could get way more if you wait.

    The term liquid is used a lot in the financial markets. If you buy a stock that has almost no volume, that stock could be hard to sell in a moments notice. If you buy a stock with big daily volume, you could always sell it in a few seconds if you just want out.

    Most 4L's have a price that you can sell them right away, some you will have to ask $30 bucks to sell in a matter of minutes but most if you have an hour you could get at least $60, wait a bit longer maybe $90 (I am talking 4l's with a mix of letters live v q y x etc)

    PS option 1 and 3 seem the same to me
     
    Last edited: Jun 21, 2020
  3. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    But isn't that common with most names? But they are not liquid.
    Liquid names are those which can be sold at will, at least?
     
  4. Samer

    Samer Top Contributor VIP Blue Account

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    Why are LLLLcom domains oft called “Liquid”?

    Supply-demand. All 456,976 taken since 2007

    $100; “Good price” for 4L.com domaining, we all know no survival w/o liquidity, means a lot; u seem have “Black or White view” of liquidity; Personally, I refer “Liquid”domains as “4L.com”
    Theyre the cheapest “Liquid”; Please exclude;
    Hyphens, numbers, non-com LLLL; not liquid.

    Liquidity is more than a “buzzword”
    When worth $70-80 at minimum easy sale.
    even with any “random letters” there is value in LLLL.com liquid value; value is close to $100;
    If dont believe me, see how fast llll.com sell np when BIN under$100, especially as go lower.

    Samer
     
    Last edited: Jul 1, 2020 at 7:23 PM
  5. jamesall

    jamesall BrandEntrance.com VIP Gold Account

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    Liquid means ability to convert to cash quickly.
     
  6. jamesall

    jamesall BrandEntrance.com VIP Gold Account

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    Crypto.com, homes.com, chocolate.com, canna.com etc???

    Not all LLLL.com are $100.
     
    Last edited: Jul 1, 2020 at 7:38 PM
  7. Samer

    Samer Top Contributor VIP Blue Account

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    CryptoCurrency.com currently without a home.

    I believe LLLL.com are the lowest cheapest "liquid"

    What makes them so attractive;

    you listed "I dont know how to write those numbers!" :ROFL:
    Some liquids can be "out of rich" LLL.com for example, even at "wholesale price"

    Samer
     
    Last edited: Jul 1, 2020 at 7:40 PM
  8. Samer

    Samer Top Contributor VIP Blue Account

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    Exactly. That's what makes them "liquid." I consider the ones under $100, (you'll find many here) with random letters "good prices"
     
    Last edited: Jul 1, 2020 at 7:46 PM
  9. RJ

    RJ Old Timer PRO VIP ★★★★★★★★★★

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    Most domains have no liquid value (because 90% of domains are awful.)

    Premium domain names are liquid because they can be sold to resellers who believe they can profit from them. Premium domain names can always be sold quickly if the price is low enough. One of the wonderful things about having a large community like NamePros is that premium domain names can be liquidated quickly. It's good for buyers looking for deals and sellers looking for exits.

    1-4 letter .com's have a liquid value based on rarity, but a lot of other domains also have liquid value based on a their attributes. Successful domain investors have a good eye for determining whether a domain is worth renewing.

    I've been experimenting with domain liquidity in recent months, and taking losses on some of my older names. What has been really interesting during this process was seeing which parts of my portfolio were not liquid. For example, if I've been renewing a name for 20 years and it won't even sell for $9 on a wholesale marketplace, that was probably not a good investment, and I can learn from that. When renewal time comes I really have to consider if I still believe in that name.
     
    Last edited: Jul 1, 2020 at 8:40 PM
  10. chateaudns

    chateaudns Established Member

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    The meaning of the word liquidity depends upon who is asking the question. To a major corporation it can mean cash available within, say, 6 months. Could be longer. To you and me it means cash in pocket and in current account at bank. Nothing more.

    Just bear in mind that scribblers, whether they be journalists, bloggers or serious commentators use jargon. Liquidity is supposedly something in economic theory. Apart from the fact that the economic theory I was "taught" through A level to graduation is little if any better than armchair theosophy with no empirical basis in fact, mathematically "proven" on quicksand, liquidity hardly got a sentence.

    The term is in fact more appropriate to analysing share values of listed companies and, apart from any personal definition you may use for your own purposes, virtually meaningless otherwise.
     

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