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Numeric .xyz names plummet despite dollar deal

Kevin Murphy, December 7, 2017, Domain Registries’s effort to sell over a billion numeric .xyz domains at just $0.65 each does not appear to be gaining traction.

The number of qualifying domains in the .xyz zone file has plummeted by almost 200,000 since the deal was introduced and dipped by over 4,000 since the blanket discount went live.

The $0.65 registry fee applies to what XYZ calls the “1.111B Class” of domains — all 1.111 billion possible six, seven, eight and nine-digit numeric .xyz domains.

These domains carry a recommended retail price of $0.99.

It’s not a promotional price. It’s permanent and also applies to renewals.

Some registrars opted to start offering the lower price from June 1, but it did not come into effect automatically for all .xyz registrars until November 11

The number of domains in this class seems to be on a downward trend, regardless.

There were 272,589 such domains May 31, according to my analysis of .xyz zone files, but that was down to 74,864 on December 5.

On November 10, the day before the pricing became uniform, there were 78,256 such domains. That shows a decline of over 4,000 domains over the last four weeks.

It’s possible that the 1.111B offer is attracting registrants, but that their positive impact on the numbers is being drowned out by unrelated negative factors.

The period of the 200,000-name decline coincides with the massive mid-July junk drop, in which .xyz lost over half of its total active domains due to the expiration of domains registered for just a penny or two in mid-2015.

Many of those penny domains were numeric, due to interest from speculators from China, where such names have currency.

The period also coincides with a time in which XYZ was prohibited from selling via Chinese registrars, due to a problem changing its Real Names Verification provider.

In recent marketing, XYZ has highlighted some interesting uses of 1.111B domains, including a partnership with blockchain cryptocurrency Ethereum.

Other registrants are using the domains to match important dates and autonomous system numbers.

.xyz sets price for numeric domains at $0.65 has announced that it will charge just $0.65 wholesale for over a billion numeric domain names in .xyz.

The revelation came as part of a confusing launch of what the registry calls its “1.111B Class” domains.

That’s because the pricing affects all 1.111 billion numerical domains of six, seven, eight and nine digits in .xyz.

These will now all register and renew for $0.65 or a recommended $0.99 retail.

That’s the same price that regular alphanumeric .xyz domains are selling at at many registrars, but the pricing for the 1.111B names is said to be fixed forever; it’s not a temporary promotion.

The announcement was themed on a take on the 16-year-old “All Your Base” meme and a white paper (pdf) written in the color scheme and typeface of a 1990s Unix terminal.

There’s a whole lot of fluff involved, but the gist of it appears to be that XYZ thinks these domains have value, when registered in bulk, to do stuff like address “Internet of Things” devices. The white paper states:

With the emergence of the Internet of Things (IoT), the 1.111B Class serves as a platform to easily and uniquely identify different devices, ranging from laptops to smart thermostats. In fact, registrants can even secure tens, hundreds, thousands to millions of domains in sequential order to create a block. These blocks can match device serial numbers or vehicle VIN numbers, then be used as portals for consumers to connect with their products, and for their products to receive updates from manufacturers.

There are of course far cheaper ways to go about this, such as using subdomains of an existing branded domain (which would have the added benefit of semantic value).

XYZ also talks in vague terms about these cheap domains being similar to Bitcoin, with reference to how Chinese domainers trade worthless domains as a kind of virtual currency.

I must confess I don’t get this idea at all. In my mind, owning a domain that has no possibility of an end-user buyer is more of a liability that an asset.

Still, it’s interesting to see a registry attempting to market domains for non-traditional purposes, so I’m curious to see how it plays out.