Chinese domain market analysis : Prepare for the hard crash

Chinese domain sales report.

Chinese domain sales report.

We’re at the end of October, and Chinese domain sales will begin their final descent, in a fashion consistent with the overall annual slump.

It doesn’t matter if it’s the Year of the Monkey or the Year of the Rooster (2017.)

Trading among Chinese domain investors for the type of short domains (2 – 4 characters, .CN, .COM, .NET TLDs) that we’ve been keeping track of, has slowed down tremendously.

Overall, it seems as if the Chinese domain market trades actively for 8-9 months in a calendar year; the beginning and end of the year show little to no activity.

In our opinion, the market is heading for a hard crash, at this rate, sometime next year.

As the volume of domains traded in China has become considerably smaller, we only report on the particular market every few days.

Today’s list of domains spans October 16 – October 20.

In the good old days of active Chinese market trading, we’d see almost as many domains on a single day or two days max; for now, this domain volume appears to be the norm for several days’ worth of trading.

Disappointing, for sure, particularly for those Chinese domain investors that were somehow convinced that asset prices will continue to rise.

When a commodity is overly traded, it loses a good chunk of its value with every trade. In the case of domain “Chips” this is evident: they are trading at 40% of peak value, or less.

Those who bought at or around peak, are now the proverbial “bag holders.”

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