FUD – Fear, Uncertainty, Doubt. This is a term used in Crypto investment circle when people panic on FUD type news and sell off their assets. The news is intended to spread FUD among the weak hands so they sell off and the Whales (deep pockets) will do their accumulation.
A member in our Chinese domains Whatsapp group posted the domaingang article about a sub 20k USD 3L.com nonchip crash yesterday. Then, there was a debate. Interestingly, the buyer of sub 20k USD domain YOT.com was from the group. He says he wants to buy more.
Look at the below table.
Number of sub 20K USD sales and greater than 20K USD sales quarter wise
|Quarter||Sales less than 20K||Sales greater than 20K||Percentage of sales less than 20K|
I have taken the number of sub 20K sales and above 20K sales in each quarter from 2015 3rd quarter. I used Shortnames.com for this research. The percentage of <20k sales in 2016 3rd quarter was 136%. From there on, it reduced to 71%, 55%, 26% in the following quarters. This is an improvement and not some kind of crash. We are almost closing in on the 2016 2nd quarter figures. Hopefully this will get better.
My points are:
1. There have always been this sub 20K sales for 3L.com non chips. It is not new.
2. Most or all of the sub 20K sales are poor letters. Let’s take YOT for example. Let’s ignore its brandable value for now. Chinese don’t want them because of letter “O.” Western people don’t want them because “Y” is not a premium letter. So, not preferred by both Worlds for development purposes. So, this kind of domains can only have an intrinsic value just because it belongs to the 3L group, and that value will always be there. What would be the case if it was BOT, GOT, SOT, POT, MOT, NOT, FOT? Will anyone get it for sub 20K?
3. We have hit probably the bottom of a bull phase. Some sell offs are natural.
4. If someone had sold a 3L.com nonchip and invested that money in cryptocurrency 3 months back, probably that had multiplied 5 to 10 times. It makes sense. Crypto currency market will have its bear cycle. It is only a matter of when.
5. Growing number of UDRP cases on 3L.coms is a matter of concern. Even if you win the name, you lose the lawyer fee which amounts to 5-6k.
6. A crash in 3L.com nonchips would mean the market gets kind of wiped out for some strange reason and it starts again from 0 or at least we are 50% down from where we are at now. 4L.com nonchips will be like 50$ a piece. Is that likely?
7. Every market has a bull-bear cycle. Is it an eternal bear cycle of Chinese domains market? Won’t the bulls come?