In the crypto community, blockchain domaining seemed to be embraced as a great investment opportunity. However it’s not the case within traditional domainers. On forums such as Namepros, there seems to be very little attention towards these.
If experienced domainers stay away from blockchain domains, are these really a good investment? Let’s analyze some facts that difference crypto domains and traditional domains.
Blockchain domains have no demanded use cases as of today.
Google search engine doesn’t index crypto domains. For this reason keyword domaining becomes pointless since even accessing these websites requires non-mainstream web browsers or extensions. Final buyers will want their website to be where the traffic is and they will for sure not look for their domains on Opensea. That considered, reselling blockchain domains seems to be a speculator-to-speculator business.
Can I still make money with crypto domaining?
Definitely there are some scenarios where you can profit from these. For example:
You buy a common word or name which is easy to identify, type and remember.
Such a domain can be sold to a final user who has the intention to use it to redirect crypto transactions to wallets. If this is the aim, there is very little demand for this use. Hence you may be sitting on the domain for years and probably never sell it.
You buy a domain that is considered valuable in traditional marketplaces.
You may do this with the expectation of selling it to another crypto domain investor at a higher value. In this case, buyer will probably be comparing your listing price with a traditional extention appraisal and expecting blockchain domains to become as popular in the future.
You plan on sitting on the domains yourself with the expectation of seeing a growth in the value of these assets.
For this to happen, Google algorithm and popular browsers will have to start picking up these websites, or a different search engine / browser will have to become popular. Both scenarios seem to be unlikely in the near future. However we could see a speculation-driven rise in prices if we see another crypto bull run that surpasses previous heights. If you’re expecting for any of this scenarios to become a reality, you also have the option to just invest in cryptocurrencies, which would also increase in price in given scenarios but offer a much higher liquidity.
Note: nothing on this website is financial advice. We’re not recommending any investment.
Learn more about domaining: THE ART OF PURCHASING VALUABLE DOMAIN NAMES