2015 was the year of domains, we all know. We expected it to repeat in 2016, nothing happened. 2017 – market is still sluggish.
In 2015, stock market had to crash.
2016-17 saw bitcoin prices pumping.
So, the question is, do the Chinese pump a particular type of investment every year? Do they have a time to pump stocks and then dump it? A time to pump domains and then dump it? A time to pump bitcoins and then dump it? A time to pump forex and then dump it? And then the cycle repeats after few years? Nice way to rotate and keep making money from the same money!
I am not the only one thinking in similar ways. Some of my friends in the Chinese Domains Whatsapp group share similar views.
If this is true, we can expect domain pumping to repeat after they have stocked up enough domains at lower prices. Whey they are not pumping or dumping, they are slowly accumulating and preparing for the pump. Look at this table to see how low the prices are now. Let’s say they are 50% discounted from peak levels. That’s lucrative for a visionary investor, ain’t it? There isn’t much difference in prices from January.
SI No. Niches Peak date Peak price Current date Current Price Percentage Difference
1 4L.COM Chips 02/08/2016 2398 01/01/2017 1259 47.50
2 4L.COM Random 02/16/2016 369 01/01/2017 218 40.93
3 4L.NET Chips 02/14/2016 301 01/01/2017 114.96 61.81
4 3L.NET Chips 03/02/2016 4151 01/01/2017 2714 34.62
5 5N.COM Chips 02/13/2016 3403.88 01/01/2017 1868.05 45.12
6 6N.COM Chips 02/07/2016 256.35 01/01/2017 79.03 69.18
7 3L.CC Chips 02/17/2016 2730.09 01/01/2017 801.83 70.63
8 4L.CC Chips 02/25/2016 127.6 01/01/2017 41.67 67.35
9 3L.CN Chips 02/17/2016 10058.6 01/01/2017 5747 42.87
10 4L.CN Chips 02/07/2016 411.83 01/01/2017 222.73 45.92
When will the cycle be repeated? No clear answer to that. Might be 3-4 years. Or they change the plan as per circumstances, global outlook and the opportunity presented at the time.
So, someone entering into the market now should have at least a 3-year vision to reap the benefits. It is definitely a buyer’s market.
I do believe domain investment presents some sort of an advantage to the Chinese investors. If you take the example of bitcoins, their investment right now is locked in their bitcoin exchanges due to regulations from PBOC. Very strict rules are being implemented. They need to do video verification now to buy and sell bitcoins. They don’t face these kind of stuff in domains. The investment is easier, digital, and quick. The market cap is lesser when compared to other type of investments; a few giants can pull the market up to the sky. It’s a secure investment. It is disciplined, prices are streamlined, lesser headaches for the investor. It can be secretive investment. It can be moved across the border. Domains are limited in quantity, new generation is becoming more aware of it, Chinese govt. is giving more importance to IT. Other than pump-dump schemes, domains also offer natural growth in value. Domains are evergreen assets.