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ICANN terminates 450 drop-catch registrars

Kevin Murphy, November 6, 2017, Domain Registrars

Almost 450 registrars have lost their ICANN accreditations in recent days, fulfilling predictions of a downturn in the domain name drop-catch market.

By my reckoning, 448 registrars have been terminated in the last week, all of them apparently shells operated by Pheenix, one of the big three drop-catching firms.

Basically, Pheenix has dumped about 90% of its portfolio of accreditations, about 300 of which are less than a year old.

It also means ICANN has lost about 15% of its fee-paying registrars.

Pheenix has saved itself at least $1.2 million in ICANN’s fixed accreditation fees, not including the variable and transaction-based fees.

It has about 50 registrars left in its stable.

The terminated registrars are all either numbered LLCs — “Everest [1-100] LLC” for example — or named after random historical or fictional characters or magic swords.

The move is not unexpected. ICANN predicted it would lose 750 registrars when it compiled its fiscal 2018 budget.

VP Cyrus Namazi said back in July that the drop-catching market is not big enough to support the many hundreds of shell registrars that Pheenix, along with rivals SnapNames/Namejet and DropCatch.com, have created over the last few years.

The downturn, Namazi said back then, is material to ICANN’s budget. I estimated at the time that roughly two thirds of ICANN’s accredited registrar base belonged to the three main drop-catch firms.

Another theory doing the rounds, after Domain Name Wire spotted a Verisign patent filing covering a system for detecting and mitigating “registrar collusion” in the space, is that Verisign is due to shake up the .com drop-catch market with some kind of centralized service.

ICANN reckoned it would start losing registrars in October at a rate of about 250 per quarter, which seems to be playing out as predicted, so the purge has likely only just begun.

Sixteen-year-old emoji .com sells for €3,400

Kevin Murphy, June 1, 2017, Domain Sales

An emoji domain name believed to be in the first three such domains ever registered has been sold.

The domain ☮.com (xn--v4h.com) seems to to have been sold to an end-user buyer, via Sedo, for €3,400 ($3,816). The sale appears to have been a quick flip by an Austrian investor.

☮ is of course better known as a symbol representing peace, most associated with campaigns for nuclear disarmament.

The name now redirects to Sonshi.com, an “educational resource for Sun Tzu’s The Art of War”. The owner explains:

As students of Sun Tzu, we understand the objective of understanding warfare is peace. Even when we are forced to do battle, we want to end it quickly. If possible, it is best to prevent fighting altogether. There are few symbols that represent peace and are as recognizable as ☮.

According to research carried out by domain investor Michael Cyger, ☮.com is one of the three oldest emoji domains, after a “hot spring” symbol in .com and .net, all having been registered April 19, 2001.

It’s not a knock-your-socks-off price, given the scarcity of emoji domains and the age of the registration, but it seems to show there are buyers out there.

Emoji domains were recently discouraged by ICANN’s security committee due to the potential for security risks, and are currently effectively banned in new gTLDs.