Hong Kong – Where the LLLL .com trading game started.
We’ve been tracking the rise, progress and demise of domain “Chips” for the past couple of years, and another negative milestone was reached recently.
Once valued at more than $2,500 dollars, LLLL .com domains without vowels or the letter “V” dropped to $1,000 levels in recent months.
And now, a NameJet auction for the domain ZRQR.com ended up at $770 dollars, a new recent low that should serve as a prelude for even lower prices.
This drop should not be considered an anomaly; after all, “JQZX” or junk letters were never priced high until the Chinese domain investor game began.
As a reminder, thousands of domain “Chips” were registered or acquired at bottom low prices almost three years ago; the game got started in Hong Kong and the original investors made a killing, and exited fast.
As with every MLM or pyramid scheme that offers no value – the majority of these domains never get developed – the proverbial “bag holders” end up in situations where they need to liquidate their assets fast, selling below valuation.
The end results: prices plummet.
Domain investors should do due diligence in current market conditions, before carrying on a game that reached its peak 18 months ago.
Hat tipe: Dale.
