Dubai resident Sharjil Saleem makes a living investing in domain names and brokering domain name deals, several of which have been valued as high as six figures. In October, he brokered a $2 million deal for the sale of domain ETH.com — 100 times the $19,800 he originally paid for the website name back in 2008.
There was crypto mania behind the domain’s crazy price appreciation. ETH is the ticker symbol for Ether, currently the third-largest cryptocurrency with a market capitalization of more than $85 billion.
And the mania has hit the domain game at full force. “Crypto is currently the hottest trend in the domain name industry,” says Saleem, whose network of buyers stems largely from China and the U.S. GoDaddy, the world’s largest domain name registrar, has data to back that assertion up. In 2017, the firm saw more than six times as many new domain name registrations with cryptocurrency-related words than in 2016. The average sale price for domains including “coin” has jumped by nearly 600% since 2011 (a couple of years after Bitcoin’s release) — with the average sale price currently being about $187.
Meanwhile, domains registered with the term Bitcoin increased four-fold in just one year. And as Bitcoin’s share of the cryptocurrency market reaches all-time lows due to the fairly recent rise of alt-coins, the average price for “crypto” domains has increased about 740% since 2011; such domains now fetch an average price of $323, per the GoDaddy data.
“Domain name registrations are generally indicators of interest in a topic and people believing that businesses can be built in that space,” says Paul Nicks, GoDaddy vice president for the domain name aftermarket. “Historically, when a sustained trend emerges, we see an increased level of domain registrations for the event.”
Aggregate price data for token-specific monikers wasn’t included, but Bloomberg reported in November that Ethereum.com was on the market for $10 million. And Saleem’s $2 million deal for the still-inactive ETH.com was the second-highest domain name transaction last year, according to Domain Name Journal, which tracks the year’s highest-reported domain sales on a weekly basis. The top seller last year, with a sale price of $2.9 million, was fly.com, which fittingly reflects the largely generic terms that usually encompass the highest-priced domain names.
This article was curated from Google News. You can read the original article here.