Opting for Alternative Investments: Aftermarket Domains
Alternative investments have been the name of the game in 2022. The biggest winner and perhaps the most underrated industry are, of course, aftermarket domains and with companies like cloudname leading the way, who knows just how far this new wave of investment opportunities can go.
Let’s take a look at where domain trading has been and where it looks like it’s going in this article.
When the DNS was privatized in 1998 by President Clinton, no one would have been able to foresee just how large of a market domain names ould have become. In 2021, for example, 1.25 million domain names changed hands in the aftermarket. With domain investors owning about 27.7 million .com domains, a sell-through rate of 4.5% is implied, essentially brandishing of the liquidity and sellability of this asset class.
In nominal values, the web domain name market is expected to reach sales of up to $6.7bn in 2022 and is foreseen to reach USD $1,025 billion by the end of 2027 with a CAGR of 4.7%, according to the Global Newswire. The global pandemic was a catalyst for the domain ame registrar market as households around the globe rushed to connect to the internet to stay connected with the world and as more users come online, businesses worldwide won’t be able to neglect the growing appeal of the internet and the new business opportunities it promotes.
And from here on out, the numbers show no signs of the industry slowing down. The question becomes: why is this market booming?
The growing appeal from investors worldwide only serves as a driving force for innovation as the same technology behind cryptocurrencies and NFTs, the blockchain, has opened up new opportunities for potential investors and domain owners to fractionalize ownership of domains – meaning that you could invest in a website and the services and rest assured that you’re getting a fair piece of the pie. Businesses like cloudname provide potential investors the capability to sell, own, trade, and rent domains like never before.
By tokenizing domains and trading ERC-20 tokens in real time, investors are able to build live portfolios and huge networks of domain names without having to go through hoops to get what you want. Cloudname is the first all in one platform for entry and advanced traders. It’s the first hub for domain as assets in the Web3 era.