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Record-breaking $30 million domain sale was financed by cryptocurrency

Kevin Murphy, June 19, 2019, 11:12:20 (UTC), Domain Sales

Records were broken yesterday when voice.com became the most-expensive domain name ever sold.

Handed over for a cool $30 million cash, it more than doubled the previous record for a domain-only transaction, 2010’s $13 million sale of sex.com.

The seller was MicroStrategy, an analytics software provider that just happens to have a stash of high-end, one-word .com domains among its assets.

The new owner is Block.one, a blockchain software developer that has raised a staggering amount of money despite not yet having any products.

The voice.com domain will be used for Voice, its first service, a social media platform based on the EOSIO blockchain platform that Block.one develops.

How Voice specifically differs from existing social media offerings is currently a little vague. It’s currently just a press release and a beta-signup form.

But the company says it will be more transparent than competitors such as Facebook or Instagram, with revenue generated feeding its content-creating users rather than the platform owner.

Not even the blogs covering crypto on a daily basis seem to understand the Voice business model yet.

A crucial step in the early stages appears to be enticing so-called “influencers” — social media personalities with large followings — over from the current dominant platforms with the promise of huge financial rewards (presumably paid in cryptocurrency) if they bring their fans with them.

Key differences include the fact that users will need a government-issued ID to sign up (mitigating the problem of anonymous trolling and bots), and that every post will be recorded for eternity in the blockchain.

Is this what social media users are crying out for? More friction and less privacy? I don’t get it, personally. But then I didn’t get Twitter at first either.

The product was announced at a flashy news event in Washington, DV a few weeks ago. An executive discusses the value proposition briefly at around the 20-minute mark in this video recording.

Block.one itself is an equally odd fish.

It has amassed oodles of cash despite having no obvious business model. It may be the only company with a billion-dollar-plus valuation that doesn’t even have its own Wikipedia page.

It reportedly raised over $4 billion through an initial coin offering — where speculators buy a basically unused cryptocurrency in the hope that it will be adopted and its value will rise — over the space of a year.

The ICO’s success appears to be partly based on the personal branding of its founders, backers and executives, who have made names for themselves in the burgeoning crypto space.

Since the ICO ended about a year ago, the company has been pumping tens of millions of dollars into third-party projects that use its EOS blockchain, in an attempt to spur adoption.

It also reportedly expects to spend $150 million developing Voice.

So, $30 million is pretty much pocket change to these guys, who’ve rewarded MicroStrategy’s speculation in domain names with the fruits of their own investors’ speculation in another type of essentially worthless digital record.

In many ways, I guess cryptocurrency really is turning out to be to this decade what domain investment was to the last.

Ten years from now, perhaps voice.com will be sold for a trillion dollars, paid for in telepathic tulips or something.

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Comments (4)

  1. Mark Thorpe says:

    Another domain bought with crypto-currency.

  2. A list of hundreds of EOS projects can be found at http://www.eosindex.io under projects

  3. wanker says:

    ICO stands for initial coin offering and it’s usually a smart contract based token on the ethereum blockchain not a whole new cryptocurrency. ICOs have mostly been scams and this one is unlikely to be any different. EOS has become infamous already for censoring and reversing transactions on its blockchain.

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