In 2015 the emergence of so called ugly 4L.com names started their rise. People started posting wanted threads on Namepros, “Looking for 4L.coms no a,e,i,o,u,v.”
The prices started to pick up pretty rapidly, I owned two 4L.coms and the first one I auctioned on Namepros and it sold for $335. I auctioned the other on NameJet a couple months later and that sold for $1,500.
Prices continued to pick up and a ton of interest was laser focused on the niche. Tim Schoon a domain investor and owner of PEJ.com Private Equity and Brokerage, coined the phrase “Chips.”
The price of Chips in 2017 are nowhere near where near they were in early 2016.
You can use Namebio and put in PPPP to hone in on just Chips and see the trends.
Recent 4L Chip sales
Looking back at 2015
So now a thread emerged on Namepros asking if 4L Chips were the best example of a Pump and Dump?
We are all now familiar with the term “PUMP and DUMP” which we daily see in crypto currency markets.
Looking backwards into the time of Chinese premium and 4L domain names reaching $2,500 and then coming back to the floor, don’t you think it was the perfect example of pump and dump?
Pumping the price continuously higher and higher and when a peak was attained, dumping it slowing back to the floor price.
My answer would be that’s too simplistic, it was much more complicated than that and things were not orchestrated on a grand scale, there was separate thought processes taking place all over the place.
There were plenty of small domainers who never made much in domaining that all of a sudden woke up to major profit. The demand coming from China and those looking to get rich quick created a bubble. Everyone likes to pick where they told everyone to stay away. Truth is some people who brag about “I knew it was hype” or “I said run for the hills” started saying that at $50 and then $500, eventually they were right to a certain degree, but if the small timers had listened to them at $100 – $300 they missed out on making a fortune.
In November of 2015 I wrote an article, There will always be someone holding the bag. People always want to get rich quick and get caught up in a speculation that’s getting frothy.
It has been a very eventful 2+ years in that niche but a LOT of people made a lot of money, and they weren’t just the biggest players. It’s been very interesting times.