BODIS

#Crypto domains : End of an era

Bitcoin, Ethereum, Litecoin, and an army of alt coins, are now trading at considerably lower prices than a year ago.

Cryptocurrency domains reached their valuation peak at the end of last year; since 2018 kicked in, all cryptos have failed to sustain their record highs.

While blockchain, the underlying technology, is here to stay, the crypto coin trading market is facing a lot of problems, such as:

  • Introduction of futures trading
  • Extensive market regulation in several countries with a large trading market
  • Dropping of advertising by the two biggest ad carriers, Google and Facebook
  • Stock market performance attracting investors, away from cryptos

With all that in mind, such “gems” as Ethereum.com and HODL.com are now considered past their prime.

In particular, Ethereum.com that claimed to have had a $10 million dollar reserve that was met, is facing an Ethereum market at 40% of its peak. There is no doubt that the single potential buyer of that domain would be the Ethereum Foundation.

The majority of the ICO market has seen its leverage drop substantially, and as we’re already in the second half of the year, the summer months are expected to be brutal.

If you have crypto domains and are prepared to “HODL” keep in mind that the market might not recover at the end of the year.


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Comments

7 Responses to “#Crypto domains : End of an era”
  1. I’d have to disagree that top crypto domain names are past their prime, but then again I’m bit biased since I own one. But just because the market is down right now compared to it’s peak in December doesn’t mean it’s dead or won’t eventually soar to new highs. Also, despite the recent drop, the market is still way higher than where it was at a year ago. Need to keep that in mind too.

  2. DomainGang says:

    Joshua – Realistically, when the crypto market goes down, the matching domain niche market follows. Less money in crypto leads to less money spent on domains related to crypto. It’s not complicated.

    The problem is that there is no indication last year’s growth will repeat itself. The market is now different than last year, per the bullet points.

  3. I fully agree with that first part as I’ve definitely experienced how inbound inquiries for crypto domains can drop when the crypto market drops. But, I don’t think we can declare crypto domains past their prime or dead until crypto is actually dead, and right now it’s certainly not dead, it’s just down. I agree that during the massive bull run at the end of last year crypto domains were definitely at their hottest, but there’s no saying we won’t eventually have another run like that again. Who knows, maybe we will, maybe we won’t. But, saying something is “past it’s prime” implies that it’ll never get back to peak levels or performance, but at this point nobody knows if that’s true or not with crypto.

  4. Donny says:

    Security Coins will do 10000x of what these utility tokens are doing today. Come end of year the tokenization around Security coins will blossom into a frenzy in about 6-18 months. Polymath or tzero could be next Goldman sachs.

    Utility coins are silly and backed by nothing- Security coins on other hand will have everything from mortgage, property, domains and virtually any investment on the blockchain. The block chain names will go through the roof if you have the right matching blank plus token name – Or blank plus chain in your domain. Just my opinion but it makes perfect sense to me.

  5. Who says there still aren’t many uses for crypto domains?
    Check out the domain names being used for ETH scams.
    The FAQ page is good too.
    https://etherscamdb.info/scams

  6. DomainGang says:

    Anthony – Domain aftermarket sales is the primary focus here. Thanks for the link.

  7. Mike says:

    I agree with Joshua that this seems like a pause after the mad rush of Crypto in 2017- but it is too soon to declare the whole era over as it seems to be evolving. Crypto names are still selling every day per Namebio but we are not seeing 6 figure sales like we saw last year. If the Crypto market rebounds a bit I believe that there will be a bounce back in these specific names as it is still early innings in this space.

    Personally, I have continued to receive activity on my Crypto names but have seen quite an uptick in 2018 on my blockchain/fintech names. I tend to also agree with Donny above that Asset backed tokens will be huge shift in the overall investing landscape as tokenization will allow for previously illiquid or less liquid assets to be much more liquid (i.e think selling “shares” of small/midsize companies or owning a portion of an piece of artwork) etc. It should make for some interesting times ahead. Cheers, Mike

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