There are two domains on this weeks list that jumped out because of the unusual high wholesale price they fetched at GoDaddy’s expired auctions. The first one is TheGroundwork.com, a two-word domain name that was bid up into the five-figure range. Why would any investor pay $10+k for a domain name of this caliber? A Google search shows that the domain belonged to an under-the-radar startup funded by former Google CEO and billionaire Eric Schmidt. The company was a major technology vendor for Hillary Clinton’s presidential campaign and was supposed to help put Hillary in the White House. This obviously didn’t happen and the domain name recently lapsed.
Then there’s a very similar sale. An investor paid more than $9,000 for the expired ButterflyLabs.com domain name. Why? It was once owned by a Bitcoin mining equipment company that was shut down by the FTC and according to this article on The Verge was named “the second-most hated company in Bitcoinland“.
The question I am asking myself is why an investor would pay such a significant amount for these type of expired domains? Do they hope the backlinks and any remaining traffic on the domain will end up making them a steady parking income? Do they like to own a piece of internet history or they think an end-user that is willing to pay five-figures will come knocking for the domain and doesn’t care about the past usage of the domain?
Here’s this weeks list: