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That pump was one time, won’t repeat – true?

Some people think the Chinese domain market boom in 2015 was one time. It is over and it is not going to repeat.

Is this statement true?

Psychologically people have a problem of buying when they are available cheap. When the price goes up, they start to buy. Some end up being bag holders.

Well, I see the two Namejet bidding handles “First” and “Twotwo” are still active and buying up domains. These two represent two big companies in China. Would they be buying domains if it was a closed door for the Chinese domain market?

Chinese domains are available at a discount (50% or more) from its’ peaks levels. It is stagnant. Not going up, not going down.

There should be two ways of making money from the Chinese domain market. 1) The normal appreciation of domains when you hold for some time. 2) The pump. Year after year, the Chinese pump certain types of investment.

What about the domains these two companies bought at the peak levels? They buy then and they buy now. They have been buying 5N.COMs at 4000 USD then and 1800 USD now.

Domains are rare digital assets. The number of domains does not grow. They are limited in quantity. They are easier to invest. They are a means to keep immense wealth in digital form. You can park 40K USD in a 3L.com. They are not controlled by governments or borders. You can move your wealth around.  Domains are here to stay.

If they are not pumping or dumping, they are accumulating.

Jijo Pappachan

Jijo Pappachan is a Chinese Domain names investor, trader, broker, author, and blogger. He started domaining in 2015 and made it big during the surge that time. He has sold more than 1000 domains. He is part of DNOAi, Domain Name Owners Association of India.
[Disclaimer: My analysis could be wrong. Do your own due diligence while making investment decisions. If you want me to write about something specific, email me.]

Comments 3

  • I wasn’t around for the Chinese boom because I was away from domaining at the time but everyday all I see is reports of premium domains being bought by Chinese domainers. I’m not sure how long the boom lasted but to me it looks like it is still going on…

  • There are two major flaws in your post above –

    “The normal appreciation of domains when you hold for some time.”
    Only domains with intrinsic value appreciate, if all domains appreciated you wouldn’t see 10-20 year old domains dropping, ever.

    “Domains are rare digital assets. The number of domains does not grow. They are limited in quantity. ”
    Domains are like space, unlimited, even .com alone could have a billion more domains.

    What is limited is the number of domains with value.

    And how do you identify domains with value? That’s the whole deal actually.

    • Hi Samit

      We are Chinese domains blog. We don’t talk about all extensions or all type of domains. We are talking about domains that are valuable in Chinese context. So we are not talking about “ALL” – Answer to your 1st argument.

      Same answer applies to your 2nd argument as well.

      Have a look at the concept what we stand for. We present our case based on that concept. We are not into “ALL” Have a look at the homepage ticker and what NICHES you see?

      Thanks for your views.

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