Why Domains are so Important
In one of the most talked-about events of last year, Facebook rebranded into Meta. Once the rebrand was live, users discovered that meta.com was redirecting to about.facebook.com, where information about the company’s new direction was readily available.
Simple as it may be, that event reflected the enormous importance of domain branding in today’s corporate world. As the internet has advanced, companies have captured the importance of maintaining a visible brand identity online. Indeed, meta.com is more memorable than something like meta-global.com; the former is a unique identity for the brand.
Therefore, it is no surprise that when a global brand like Nissan cannot acquire its desired domain, nissan.com, it fights hard with lawsuits alleging cybersquatting. Nissan failed, and today, nissan.com belongs to Nissan Computers, founded by Uzi Nissan. The much-popularized case lasted almost a decade in the courts.
Some brands don’t go to court, though, choosing to pay off the original owner of the domains they require. Hence, domain trading is a well-established profit-making venture for savvy investors banking on the bankable potential of various domains.
In 2018, tesla.com was sold to Elon Musk’s automaker company for $11 million; a year later, voice.com went to the NFT company for a whopping $30 million, becoming the most expensive domain ever sold.
The Limitations of Traditional Domain Trading
For a business with such a huge profit potential, domain trading happens rather crudely, unlike other more recognizable investment models, such as stock, forex, or crypto trading. The process is quite straightforward: an investor purchases a domain they think has a huge potential, then they simply wait until a big brand possibly comes with a massive offer.
As a result of this, the vast majority of domain traders never bank a profit. More so, the trading space gets increasingly competitive with each passing day. With millions of domain names getting registered as time passes, the space for a trader to maneuver their way to profit continually shrinks, particularly for top-level domains.
However, technology never stops advancing, and we might just be on the brink of a domain trading revolution with a new blockchain-backed approach that will tokenize domains and ultimately promises to transform online investing forever.
Just like the introduction of fractional shares in 2019 decentralized access to stock trading for the younger demographic, Cloudname, the company behind the innovative effort to tokenize domains, aims to transform the domain investment field and domain fractionalization is one of the most apparent benefits.
Tokenizing Domains for Greater Profitability
Domain fractionalization eases the investing world by enabling holders to sell domains and reap profits more easily. Once a domain is tokenized, every holder of the domain token receives a percentage of the profit raked in as the domain acquires more value over time.
Cloud Names tokenized domains are ERC20 NFTs, which can be exchanged for market liquidity. Transactions are backed by the Polygon-based CNAME token. CNAME is a multichain token built on a smart contract that creates a seamless bridge between the Polygon network and the Binance ecosystem.
Each tokenized domain is kept in a vault, with Cloudname as a trustee owner, so that only the person with all the tokens can withdraw the domain. All these take place directly on the blockchain, guaranteeing the security and transparency of all transactions.
Source: Cloudname
These blockchain-based domains have a myriad of benefits. Unlike traditional domains, they do not require ICANN approval, nor will they need to be renewed. More so, they can serve as cryptocurrency payment gateways. Creators can mint as many tokens as they want, sell to others, and make profits without letting go of their ownership of the domain. Ultimately, this expands the pathways to domain trading profitability.
Tokenizing domains makes it easier for domain traders to generate revenue through renting domains. The reluctance to give away valuable domains cheaply contributes to trading competitiveness; it’s part of why big-name brands are wont to threaten lawsuits to claim domain names.
Yet, much of these challenges would be solved if reluctant owners could rent out domains, as Cloudname promises users of the platform would be able to do, thereby preserving their ownership and guaranteeing continual profit generation. Thus, one sees how domain ownership could quickly become a passive income cash cow in no time.
Cloudname: Building the Metaverse of Trading
Currently, early adopters can pre-register for the comprehensive trading solution and gain a head start participation in Cloudname’s mission to democratize and decentralize domain investing. The company aims to become the global leading stock exchange of the domain world.
In addition to blockchain domain trading, Cloudname provides users access to relevant data and AI-driven analytics to enable them to make better trading decisions, including spotting potential trends, live pricing, and portfolio management. By providing tools for trading both traditional and crypto domains, Cloudname bridges the gap as the real estate agent of the metaverse.
In conclusion, as we progress into the Web 3.0 evolution of the internet, there can be no genuinely decentralized internet without decentralized domains, displacing centralized registrars such as GoDaddy and Namecheap. Certainly, traditional domain trading is not going out of vogue right away. However, towing the paths of companies like Meta and Jack Dorsey’s Block, Cloudname presents a picturesque image of the Web 3.0 world and its potential for domain trading and investing as a whole.
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