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ICANN expects to lose 750 registrars in the next year

ICANN is predicting that about 750 accredited registrars will close over the next 12 months due to the over-saturation of the drop-catching market.

ICANN VP Cyrus Namazi made the estimate while explaining ICANN’s fiscal 2018 budget, which is where the projection originated, at the organization’s public meeting in South Africa last week.

He said that ICANN ended its fiscal 2017 last week with 2,989 accredited registrars, but that ICANN expects to lose about 250 per quarter starting from October until this time next year.

These almost 3,000 registrars belong to about 400 registrar families, he said.

By my estimate, roughly two thirds of the registrars are shell accreditations under the ownership of just three companies — Web.com (Namejet and SnapNames), Pheenix, and TurnCommerce (DropCatch.com).

These companies lay out millions of dollars on accreditation fees in order to game ICANN rules and get more connections to registries — mainly Verisign’s .com.

More connections gives them a greater chance of quickly registering potentially valuable domains milliseconds after they are deleted. Drop-catching, in other words.

But Namazi indicated that ICANN’s cautious “best estimate” is that there’s not enough good stuff dropping to justify the number of accreditations these three companies own.

“With the model we have, I believe at the moment the total available market for these sought-after domains that these multifamily registrars are after is not able to withstand the thousands of accreditations that are there,” he said. “Each accreditation costs quite a bit of money.”

Having a registrar accreditation costs $4,000 a year, not including ICANN’s variable and transaction fees.

“We think the market has probably gone beyond what the available market is,” he said.

He cautioned that the situation was “fluid” and that ICANN was keeping an eye on it because these accreditations fees have become material to its budget in the last few years.

If the three drop-catchers do start dumping registrars, it would reveal an extremely short shelf life for their accreditations.

Pheenix upped its registrar count by 300 and DropCatch added 500 to its already huge stable as recently as December 2016.

Nigger.com returned to NAACP after expiration prompts $10,000 auction

Kevin Murphy, February 14, 2017, Gossip

US civil rights group the National Association for the Advancement of Colored People has reclaimed the domain name nigger.com after it expired and went to auction.

The names nigger.org and nigger.net were also affected, but according to Whois records the NAACP restored all three yesterday.

The names had been in pending renewal/delete status for three weeks, during which time the registrant was listed as Perfect Privacy, Web.com’s proxy/privacy provider.

While expired, the .com had been placed (presumably automatically) in a NameJet auction, as first reported by Raymond Hackney at The Domains.

At time of writing, the auction had attracted 72 bids and a high offer of $10,000.

It was a “Wish List Auction”, indicating that the domain’s prior registrant had not yet exhausted all options to have the name restored.

As Hackney noted, if these domains fell into the wrong hands it could have a negative impact on race relations in the US.

But the NAACP, which first got hold of the domains almost 20 years ago, seems to have had a remarkably lackadaisical attitude to them over the last few years.

Not only did it accidentally allow the names to expire, but DomainTools and Archive.org captures show that the associated web sites had been compromised repeatedly since late 2014.

Every capture since late 2014 shows taunting, racist messages from the hackers, at least one of which associated himself with troll group the “Gay Nigger Association of America”.

.com-dominated NamesCon auction already has one million-dollar bid

Kevin Murphy, January 17, 2017, Domain Sales

There’s still about week to go until this year’s NamesCon conference kicks off in Las Vegas, but the live auction that will close the first day of the show has already seen pre-bidding action.

One batch of domains has already received a high bid of $1,010,000, but does not appear to have yet met its reserve.

The batch is led by bar.com, but also includes bar.net, cafes.com, grill.com, place.com, pub.com and shelter.com.

Another five domains on the list, all .com names, have attracted bids in six figures, topped by the $800,000 bid for ol.com.

The list of names up for pre-bid on NameJet (100 of which will hit the live auction) is dominated by Verisign TLDs — .com, obviously, and to a lesser extent .net and .tv.

The biggest pre-bid for a 2012-round gTLD is the $1,010 currently offered for gold.club, roughly 110th on the list as ordered by current bid.

The most active new gTLD auction is currently shoes.xyz, which has 28 bidders but a top bid of just $330.

I’m not sure how much can be inferred from pre-bids, but it certainly seems that most of the money from domain investors is still being put into short, one or two-word .com domains.

The auction will begin at 1500 US Pacific Time next Monday, January 23.

The auction is being managed and promoted by Right Of The Dot and NameJet. Would-be buyers need a NameJet account to participate.

Names not sold during the live event will go to an extended auction until February 9. ROTD’s Monte Cahn said this is in order to give Chinese bidders time to bid after Chinese New Year (January 28 this year).

Pheenix adds 300 more registrars to drop-catch arsenal

Kevin Murphy, December 16, 2016, Domain Services

The domain drop-catching arms race is heating up, with budget player Pheenix this week acquiring 300 more registrar accreditations from ICANN.

According to DI records, the company now has almost 500 registrar accreditations in its family.

More accreditations means more registry connections with which to attempt to acquire expired domains as they return to the available pool.

It also means that Pheenix’s dropnet (a word I just made up that sounds a bit like “botnet” in a pathetic attempt to coin a term for once in my career) is now a bit bigger than that of Web.com, the registrar pool behind Namejet and SnapNames.

It’s still a long way behind TurnCommerce, owner of DropCatch, which two weeks ago added a whopping 500 new accreditations, bringing its total to over 1,250.

An extra 300 accreditations would have cost Pheenix over $1 million in up-front ICANN fees and will incur ongoing fixed annual fees in excess of $1.2 million.

Demand Media spins off Rightside

Kevin Murphy, August 5, 2014, Domain Registries

Demand Media has completed the spin-off of its domain name business, Rightside.

Shares in the new company, which will be listed on the Nasdaq stock exchange, went to existing Demand Media shareholders.

Trading under the ticker symbol NAME, Rightside stock started off at $16.77 yesterday morning and is currently trading at around $15.07.

Rightside comprises number two registrar eNom, retail registrar Name.com, new gTLD portfolio registry United TLD (which is branded Rightside), and its share of auction house NameJet.

It is headed by CEO Taryn Naidu and chairman David Panos.

The company also today named its initial board of directors.