If domain investment is a side scam, a few points to ponder ......

First of all, I'm a broker and recently I've had some friends inquire about investing in domains. And then asked me whether domain name investment is a good business or a magnificent Ponzi scheme? This question sounds sensational at first glance, but the thinking reflected in it is worth every domain investor's deep thought. Here, we might as well explore a few key points:

1. The real value of domains vs. market speculation
The value of domains is due to real demand or market speculation? Are many high-priced domain transactions based on actual use, or just rely on the transfer between investors? If the value of domain names is artificially inflated, but lack of actual use support, then this “drum roll” model, how far can go?

2. End-user vs. investor ratio
What is the percentage of domain users who really use it to build websites and brands? If most of the buyers are investors rather than end-users, does it mean that the domain market is closer to a “take-over” game? How long can investors buy and sell domains to each other?

3. Investors' Profit Model
Is the profit model of domain investment healthy? How long can we tell the story of buying low and selling high? Are new funds coming in because they see real business opportunities, or are they attracted by the story of high returns? Is there a shadow of a Ponzi scheme in this model of gradually attracting new money?

4. Liquidity and liquidity risk
Are domains easy to liquidate? Compared to other investment vehicles, domains are not very liquid. Many investors may not realize this, is everyone not worried about the difficulty of liquidation? Are you aware of whether the domain you have can be sold smoothly?

5. Is “scarcity” natural or artificial?
Is the scarcity of domains natural or is it artificially created by the market? Will the increasing number of suffixes and fierce competition diminish the scarcity of traditional .com domains? Is the investor's belief in “scarcity” a fact or an illusion packaged by the market?

6. Information Asymmetry and Market Dominance
Is there a serious information asymmetry in the market? Are a few headline investors, platforms and marketing organizations in control of the market? Are ordinary investors aware of the real market trends, or are they being led by market sentiment and hype?

7. Where is the future of domain investment?
With the development of technology, new domain name system, decentralized domain names and so on continue to emerge, the traditional domain market will be how much impact? Once the core logic of the market changes, how should investors respond? Is the future of domain investment sustainable?

What do you think about the present and future of domain investment? Welcome to discuss!