Pump-n-Dump,.. the New marketplace.

[Mark Talbot]

Ok, before you hash me, a disclaimer.

I am not new here, I am not new to domaining, and I am not a full time domainer, nor hold animosity to anyone here or abroad.

That said, I want to generate discussion here that has long been held for discussion in other market circles, without remorse.

Pump-n-Dump.




Do you think this is the current market in domainer circles?

Do you think big players are propping up a market where the market is soft and deflating?

Do you think that the domain market as soft as it has been needs this kind of activity to be viable or to grow somewhere in the future?

Or do you think mechanisms are in place to prevent this type of activity, as opposed to other capitalized market places.



OK, it is out there.

But dont shoot me, it wont hurt or harm me.

But shoot the message, or support it, what are your thoughts.

This exists in the Dow and other endices, why could it not exist in this marketplace.

And have you seen this before as a domainer.


Domaining is a reletive new marketplace, pushing to be in light of other big boys, why not the same problems.

 

[000]

Pump and dumpers aren't fussy … domains, beanie babies, if there's a buck to be made, stand back and watch the pumpers work. Pump and dump is most active and visible in rising markets when suckers are flush with cash and feeling their oats. At the aftermarket level, the llll.com frenzy of 2007-2008 was textbook pump and dump. Page back thru the lll.com thread at that other forum. It's a pumper vs naysayer battle royale. At the OEM (registry/registrar) level, most new TLD's get pumped/enthusiastically marketed. Irrational exuberance is not illegal. Fraudulent deceptive marketing is. Law breaking shill auction bids sometimes lend muscle to the pump. The bottom line is caveat emptor.

 

[David G]

Good question Mark. The answer is it's on a big downward trend and big players can't help it even if they wanted to.

.......the market is soft and deflating? Do you think that the domain market as soft as it has been needs this kind of activity to be viable or to grow somewhere in the future?

 

[Mark Talbot]

Irrational exuberance is not illegal.

No it isnt. But intelligece isnt either lol. (sp)

 

[Tia Wood]

Mark, it almost sounds like you are accusing big players of pumping and dumping. Am I reading that right?

 

[Mark Talbot]

Mark, it almost sounds like you are accusing big players of pumping and dumping. Am I reading that right?

A most asserted NO!

But I am invested in many ways,.. and the domain industry wants desperatly to be seen as investors.

And I KNOW as a stock investor that the phrase "pump and dump" are an unfortunate side effect of the market.

My suggestion is by no means an allegation towards anyone, but merely a desire to bring into conversation of the peers justified thought on what already exists in every other investment circle.

Now this doesnt mean it doesnt exist here in this type of market, nor does it suggest it does likewise,... but it is suggesting that the conversation SHOULD exist here if in fact we logically consider domains an investment.

Think about it,... what makes this style of "investing" so special as to be excluded from the darker styles of selling.

It isnt. And as such,... it is just as prone to consider.

 

[Biggie]

the admiration that you/domainers have for them (big players) and "pedestalization" that you and others domainers view them from and put them on....


is what allows the pump and dump scenerios to exist.


in udder werds

if you didn't try and follow what those mo-fo's be doing, then you wouldn't get caught up in the dump and pump.

but every time some blogger on the agg writes a title with one of their names in it.....there goes the 'he said/she said" bs.

sometimes "news" is news, and sometimes news is a distraction, or the launch of confusion.

then you rely on a clarifier, or a domain authority for an interview.


so you can only blame yourself, if you follow, like, retweet and subscribe.

imo...

 

[Tia Wood]

A most asserted NO!

Thanks for the clarification. I read it a few times. Guess I read it wrong. Sorry!

 

[ksinclair]

I think the good .com are stronger then ever. But everyone is smarter now, so there is more clarity on
how many weak domains there are. The majority of domains offered on a forum are very weak.

 

[draggar]

Pump (or hype) and dump isn't exclusive to the domainer market - new products do it all the time (Apple is the best a this). They hype up something and charge a premium to all those who want it first. Nintendo did it too with the Wii ("limited stock" anyone?) - domains are no different.

Look a the NNNNN.com pump a few years back - there was a lot of hype over that they would be sold out and jump in value so many people bought into it only to have portfolios of NNNNN.com domains dropped a year later.

Pump & dump is a part of a capitalist society and will be. If there is a "get rich quick" scheme out there people will flock to it and many will lose money in it. The nice thing in the domain market is that even if you buy into a scenario like this you can still turn that investment around and make money from it - it just requires work for it and you need to think over the long term.

 

[Mark Talbot]

Forget "long term",. so to speak.

Who is in position to sell,.. and who is in position to "need to sell to meet numbers".

Buy Domains is an easy target, that is their biz,... but look deeper.

 

[Mark Talbot]

Deeper,.... yes.

Any takers?

 

[Theo]

As a process, the Pump and dump includes the following:

1. Early inclusion in an upcoming market or genre.
2. Involvement of marketing or hype to generate interest to those that are not.
3. An upcoming peak of the market known only to those that were part of #1
4. Dumping of assets at the peak by the insiders, all while the market is known to be overpriced or without a future.
5. Rinse and repeat.