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Domainer and GoDaddy have reported an NFTs.com domain sale transacted through Escrow for a whopping $15 million. It’s the second all-time largest public domain sale, following a $30 million sale from voice.com in 2019. The domain is also the largest domain acquisition in the blockchain industry.
“NFTs.com is a phenomenal asset, considering how NFTs are revolutionizing digital asset ownership, laying the foundation of the metaverse economy, play-to-earn games, and more,” the press release wrote.
The NFTs domain is one of the largest blockchain-related transactions seen on brokerage platforms. In 2018, NFTs.com was for sale for $25,795, while last year, NFT.com was purchased for $2 million. Eth.com was sold for $2 million in 2017.
The domain buyer is unknown, but they seem to have ties with DigitalArtists.com, which is currently displayed on the website. Last year, DigitalArtists.com was bought for $300,000.
However, the large sale seems slightly off in terms of credibility. The domain appraisal tools are incorrect. GoDaddy.com valued NFTs.com at $7,598, Estibot.com at $18,000, Saw.com at $48,000, and Alter.com’s appraisal was $3,900.
“The $15 million sale of NFTs.com has brought all sorts of folks hoping their NFT domain names will fetch some six-dollar figures. NFT.com went for $2 million in 2021 and someone did predict that the NFTs.com domain name would sell for 8 figures; only to get a dislike.”
Gabriela Reyes, CEO & Co-founder of LivelyVerse, said that the NFT.com domain marks another milestone in the growing relevance of the Web3 ecosystem but raises questions:
“Acquired for $15 million, the domain name is tagged as the second largest domain name acquired and a number of questions are currently raised about the legitimacy of this sale. With the anonymity of the domain name’s owner, industry observers are wondering whether this is a mere publicity stunt.”
Web2 domains for the crypto industry don’t seem like a ‘big deal.’ On the other hand, ENS domains (Ethereum Name Service) have been selling for hundreds of thousands of dollars. The biggest sale was recorded for paradigm.eth, which sold for a whopping price of 420 ETH (approximately $1.5 million).
It’s still unclear what kind of business NFTs.com would serve. It could be a new NFT marketplace related to DigitalArtists.com, which is a curated NFT platform. The sale could depict wash trading or market manipulation to gain public attention as the domain sale, at the first sight, seems overpriced.
“The sale might appear like a marketing stunt, judging from face value. But looking at the trend and the frenzy generated around NFTs, the domain name should have fetched even more,” Slutzky said. “In any case, Car.com sold for 58 times the value of NFTs.com. Cars.com went for $872 million. Besides, we cannot dismiss the sale as a market manipulation since such schemes are usually pump and dump. This is someone acquiring some sort of intellectual property for $15 million, perhaps to drive their business or to derive profit from their venture.”
Reyes agrees that NFTs is a high-value industry and the real worth is yet to be discovered, thus the domain seems to be sold for an appropriate price:
“One crucial note we can make is the parties involved in the trading, GoDaddy, Escrow.com, and Domainer.com, the trio of which have built a resounding reputation for themselves over the years. While there is no likelihood that these firms will want to compromise their integrity, it should also be noted that Web3.0 and specifically the NFT world is a high-value space whose worth is still under discovery. Should domain names like Voice.com be worth as much as $30 million, then the question of NFTs.com’s sale should be less questioned as the buyer has placed enough value on the acquired name.”
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