Chinese domain market : Deader than a Walking Dead zombie

Chinese domain market report.

Chinese domain market report.

In recent weeks, acknowledgements of the Chinese domain market’s dismal performance this year, have started to appear.

Domain forums are abuzz with the shockingly low numbers one can get from selling “Chinese premiums,” as compared to 2015.

Punch-drunk from last year’s stellar performance, those who insisted it wasn’t a bubble, carried on the game of musical chairs; many listened to their siren song, unfortunately.

A lot of Chinese domain investors were caught in this game, which started two years ago by a Hong Kong investment fund.

Sales volume is currently very low, particularly among the LLLL .com “Chips” genre. These QXZJ combos that were selling for $10 – $40 until 2014 jumped above $2,500 last year. This year, we’re witnessing a dramatic drop, even below the $x,xxx mark.

Why is that?

Constant trading of these assets by Chinese domain investors, as opposed to actual use, led to the devaluation of these domains. There are simply very few buyers left to keep on buying at higher rates.

The pyramid has reached its peak growth rate and height!

Even LLL .com domains of lesser quality letters witnessed a drop in prices consistent with their previous value before the Chinese domain game began.

We keep track of transactions for short domains, between 2 to 4 characters in length, for the .CN, .COM and .NET TLDs.

Today’s list is longer than expected, thanks to some portfolio sales.

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3 Responses to “Chinese domain market : Deader than a Walking Dead zombie”
  1. Steve says:

    The entire World economy is screwed. The domain market is nothing compared to other industries. No kidding the market is down, the entire economy is down. Actually domains are still a great way to store and transfer value across borders. $20 to $40 domains still selling for hundreds or more. Yeah bad market. Haha.

  2. DomainGang says:

    Steve – Those that bought at $40 are good. Those that bought at the market’s height are SOL. Those that bought NNNNNN and other junk are beyond that.

  3. Steve says:

    Of course anyone that buys the top of ANY market will LOSE. This is not exclusive to domains. Saying that the domain market is dead is just wrong. Maybe you and others bought at the top and are mad at those that didn’t. Doesn’t mean that the market is dead, just means you better work on your timing in and out of markets. One name I paid 15 bucks for was Do you think this is a worthless domain? My experience with offers for it says there is still lots of room over $15 for a bit of gravy.

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