You can’t use money to buy .box domains

In what is probably the strangest domain launch to date, the crypto-focused new gTLD .box has gone on sale, but you can’t use actual money to buy domains there.

The unique selling point of .box domains is that they work on both the regular consensus DNS — .box is an ICANN-approved and contracted gTLD — and the Ethereum Name Service blockchain alt-root, so registrants can use their domains to address their crypto wallets.

From a business model perspective, registry Intercap is doing a lot of things differently.

For starters, it’s not accepting hard currency. The regular general availability price at My.Box, which appears to be the only registrar, is $120 a year, but you can only pay in crypto coins — either Ethereum or USD Coin, a crypto coin that has its value linked 1:1 to the US dollar.

My.Box is using ICANN-accredited top-10 registrar NameSilo to register names, but NameSilo’s own web store does not appear to support them.

The current Early Access Period is also different to the norm. Instead of the price reducing by a certain amount every day at midnight, it’s constantly ticking down, minute by minute, at a rate of 50% a day, so you can get a name for less if you just hang on a few hours (or minutes, or seconds).

EAP pricing started at $7,680 last Thursday and at time of publication is around $470. Judging by zone files, about 30 domains have been sold during EAP so far.

Dropping domains pricing is also handled in what I believe is a unique way. Instead of dropped domains entering the available pool at regular GA pricing, they instead are returned to EAP pricing — so they’ll cost $7,680 to re-register the moment after they drop and you’ll have to wait a full seven days to get them at the regular base price..

I can see the potential for controversy here, but it doesn’t seem much different to registrars auctioning off their customers’ domains after they expire.

My.Box also asks its customers to manage their domain via its app, and it does not allow them to assign their own nameservers — they have to use the nameservers assigned by the registry.

Stop me if you’ve heard this…

The collective noun for wildebeest is “an implausibility”.

In the incredibly unlikely event that you’re ever confronted by a large group of these majestic bovine quadrupeds, that’s how you should describe what you see.

An implausibility of wildebeest.

I tell you this not because it’s relevant to anything else that appears in this article, but because a series of unfortunate and unavoidable circumstances have kept me offline for the last few weeks, and you may find this round-up piece tells you lots of things you already know.

If that’s the case for you, I can only apologize, with the caveat that you probably didn’t know about the wildebeest thing, so at least this post has provided some value.

Let’s start with ICANN, shall we?

My ICANN announcements feed contains 20 unread articles this morning, and as far as I can tell from a cursory glance over the headlines, the Org has done almost nothing of consequence recently.

It’s mostly outreach-this, engagement-that, review-the-other. If official announcements were any guide, ICANN would look like an entity far more concerned with promoting and promulgating its own increasingly debatable legitimacy, rather than doing the stuff it was originally set up to do.

Like new gTLDs, for example…

While ICANN continues to fart around with its working groups and consultations and Dantean layers of bureaucracy, the blockchain/crypto/web3 crowd are continuing to bolster their efforts to eat the Org’s breakfast, lunch and dinner.

Most notably, blockchain-based alt-root naming services including Unstoppable have launched the Web3 Domain Alliance, which, even if it misses its goals, promises to make the next new gTLD round an even bigger litigation clusterfunge than the last.

The alliance intends to among other things “advocate for the policy position that NFT domain registry owner-operators create trademark rights in their web3 TLDs through first commercial use with market penetration.”

In other words, if some well-financed crypto bro creates .example on some obscure blockchain root and gets a little bit of traction, ICANN shouldn’t be allowed to create .example on the authoritative consensus root.

This has the potential to make Jarndyce and Jarndyce look like a parking ticket hearing and I take some comfort from the fact that I’ll most likely be long dead before the lawsuits from the next new gTLD round have all played out.

The Web3 Domain Alliance is promising imminent pledges of support from “web2” companies, and it will be interesting to see if any company in the conventional domain name industry is ready to break ranks with ICANN and sign up.

In actual gTLDs…

Another thing that will likely post-date my death is the launch of the last gTLD from the 2012 application round. Many still lie dormant, but they do still continue to trickle out of the gates.

While I’ve been offline, we’ve witnessed the general availability launch of Google’s .boo and .rsvp — the former criminally missing the increasingly lengthy and bewildering Halloween season and the latter probably a little late for the Christmas party season — while non-profit .kids went GA a couple of days ago.

In the world of ccTLDs…

GoDaddy is formally relaunching .tv, the rights to operate it won in a bidding process earlier this year after incumbent registry Verisign declined to compete.

It’s talking about a “a complete rebrand and marketing makeover”, with a new, very colorful, destination site at TurnOn.tv.

Many years ago, a senior Verisign exec described .tv to me as “better than .com”, and in a world where any shouty teenage pillock can essentially launch their own TV show for the price of an iPhone and broadband connection, that’s probably never been truer.

Meanwhile, Ukrainian ccTLD registry Hostmaster isn’t going to let the little matter of an ongoing Russian invasion interfere with its 30th birthday celebrations and the 12th annual UADOM conference.

It’s being held remotely for obvious reasons. It starts tomorrow, runs for two days, and more details can be found here and here.

In other conference news, NamesCon has also announced dates for its 2023 NamesCon Global conference. According to Domain Name Journal, it will return to Austin, Texas, from May 31 to June 3 next year.

DomainPulse, the conference serving the Germanophone region of Europe (albeit in English), has set its 2023 event for February 6 and 7 in Winterthur, Switzerland.

Scoop of the month…

By far the most interesting article I’ve read from the last month came from NameBio’s Michael Sumner, a reverse-exposé of the successful .xyz domain investor who goes by the name “Swetha”.

This area of the industry is not something I spend a lot of time tracking, but I’ll admit whenever I’ve read about this mononymed India-based domainer’s extensive, expensive .xyz sales, I’ve had a degree of skepticism.

It turns out that skepticism was shared by some fellow industry dinosaurs, so Sumner did the legwork, amazingly and ballsily obtaining Swetha’s Afternic login credentials (with her consent) and hand-verifying years of sales data.

He concluded that the sales she’s been reporting on Twitter are legit, and that she’s a pretty damn good domainer, but understandably could not fully disprove the hypothesis that some of her buyers are .xyz registry shills.

Elliot Silver later got a comment from the registry in which it denied any kind of collusion and implied skepticism was the result of sexism and/or racism, rather than the sketchiness sometimes displayed by anonymous Twitter accounts and the registry itself.

Earnings, M&A, IPOs…

• The otherwise-consolidating industry is getting its first IPO in some time, with United-Internet pitching a public markets spin-off of its IONOS group, which includes brands such as Sedo and InternetX, to potential investors. DNW pulled out some of the more interesting facts from its presentation.
• Industry consolidator CentralNic reported a strong Q3, though its growth is no longer dependent on its domain name business.
• Tucows reported modest growth (pdf) for Q3, hindered by flat-to-down results in its domain name business.
• GoDaddy, which no longer breaks out numbers for its domains business, reported a billion-dollar quarter.
• Smaller, faster-growing registrar NameSilo reported turning a loss into a profit in the quarter.
• In M&A, Namespace, owner of EuroDNS, announced it has acquired fellow German registrar Moving Internet.

And finally…

The DNS turned 35. So that’s nice.

Now, if you’ll excuse me, I have 600 unread emails to deal with…

NameSilo profitable in Q1

Canadian registrar NameSilo today reported that it took a profit in the first quarter, reversing the loss of a year ago.

The company reported a net income of CAD 330,613, compared to a loss of CAD 3.8 million in Q1 2021, on revenue that was up 34.7% at CAD 10.8 million.

The registrar said its names under management had increased to 4.63 million by the end of March.

NameSilo now believes it is the 11th largest registrar.

NameSilo says it’s growing too fast to be acquired

NameSilo Technologies has called off talks to sell its registrar, also called NameSilo, saying the company is growing too fast to exit right now.

The Canadian company grew its domains under management by 578,000 between April 2020 and April this year, when it stood at 3.9 million domains. It says it has since crossed 4.3 million.

The prospective deal, with Dutch acquisition vehicle WGH Holdings was announced last December.

But NameSilo’s CEO Paul Andreola said in a press release:

We believe that the value of Namesilo has grown significantly since the discussions with the prospective buyer began and feel that there is more value to be unlocked over the near to medium term for shareholders.

At the same time, the company reported revenue of $8.4 million for the second quarter, up $900,000 on the same period last year, with adjusted EBITDA of $435,344.

Bookings were up to $9.9 million from $7.6 million.

It was the company’s debt that first spurred acquisition talks. NameSilo says that debt has been reduced from $4.7 million to $3.85 million since March.

.com and NameSilo fingered as “most-abused” after numbers rocket

SpamHaus has revealed the most-abused TLDs and registrars in its second-quarter report on botnets.

The data shows huge growth in abuse at Verisign’s .com and the fast-growing NameSilo, which overtook Namecheap to top the registrar list for the first time.

Botnet command-and-control domains using .com grew by 166%, from 1,549 to 4,113, during the quarter, SpamHaus said.

At number two, .xyz saw 739 C&C domains, up 114%.

In the registrar league table, NameSilo topped the list for the first time, unseating Namecheap for the first time in years.

NameSilo had 1,797 C&C domains on its books, an “enormous” 594% increase. Namecheap’s number was 955 domains, up 52%.

Botnets are one type of “DNS abuse” that even registrars agree should be acted on at the registrar level.

The most-abused lists and lots of other botnet-related data can be found here.

Earnings reports: GoDaddy, Tucows and NameSilo report growth

Three of the industry’s largest registrars announced revenue growth in their latest reporting periods in recent days.

GoDaddy

Market-leading GoDaddy reported a whopping 18.8% year-over-year revenue growth from domains in its first quarter, with $422.7 million.

CEO Aman Bhutani told analysts that much of this growth is being driven by the company’s emerging strategy of acting as a secondary-market intermediary, making it easier for domainers to sell their domains quickly to end-users (what it calls “independent customers”) and vice-versa.

“Independent customers added over 200,000 domain names that had otherwise been passive into the aftermarket, spurring activity for domain investors,” Bhutani said.

It currently has over 20 million domains listed on its aftermarket platform, contributing 10% of total revenue, the first time it’s broken into double-digits, analysts were told.

Domains was the best-performing segment in growth terms by some margin.

Including its other segments, GoDaddy’s overall Q1 revenue was up 13.8% year over year, at $901.1 million. It had a net income of $10.8 million, compared to $43.2 million a year earlier.

Tucows

Tucows reported domain services revenue up 4%, from $59.5 million in Q1 2020 to $61.2 million, with adjusted EBIDTA of $13.8 million versus $11.5 million a year ago.

CEO Elliot Noss said in a statement that new domain registration growth was slowing following the “pandemic surge” it experienced in 2020, when lockdown-hit businesses flew online to keep afloat.

Including its non-domain segments, Tucows reported Q1 revenue of $70.9 million. That was down from $84 million a year earlier largely as a result of the sale of its Ting Mobile business to Dish Network.

Net income for the quarter was $2.1 million, down 24% compared to the year-ago period.

NameSilo

Fast-growing registrar NameSilo reported revenue for its full-year 2020 of $31 million, up 14.3% on 2019. That was primarily driven by domains growth and its newish add-on services, it said, but it does not break down its revenue by segment.

It had net income of $6.5 million in fiscal 2020, compared to a net loss of $4 million in 2019.

It added 235,347 net domains in gTLDs in 2020, according to reports filed with ICANN, ending 2020 with 3,663,090 names under management. NameSilo said that number is now around 3.9 million.

NameSilo in profit as sales rise 11%

Canadian registrar NameSilo today reported a profit for the third quarter, as bookings increased 11% sequentially over the three months to September 30.

One of the fastest-growing registrars, the company said that as of today it has 3.54 million domains under management, up from the 3.45 million it reported at the start of September.

NameSilo said its revenue for the quarter was $8.07 million, up 2.8% on Q3 2019. Its net income was $2,72 million, compared to a net loss of $753,093 a year earlier.

Much of the net income was attributable to income on investments, the firm said.

Bookings, which represents the number of domains sold but not yet recognized as revenue for accounting purposes, was up 11% compared to Q2 at $8.4 million.

Dark horse NameSilo doubles size in 2018

Domain name registrar NameSilo says it managed to double its size in terms of cash bookings and domains under management in 2018.
The Vancouver-based company said that in 2018 it added 1.27 net new domains, an increase of 106%.
Bookings were $20.1 million, up from the $11.1 million it reported in 2017, according to the company.
NameSilo now says it has 2.49 million domains under management.
That would be a whopping 500,000 increase on the end of September, judging by the latest gTLD registry transaction reports.
The registrar is now the 17th-largest gTLD registrar by DUM, bigger than old hands such as Register.com and Name.com.
And yet I think it’s fair to say the company is a bit of a dark horse. It’s certainly managed to stay under my radar until now.
You’d be hard pressed from its web site to figure out who runs the company or where to find them, despite what ICANN registrar contracts require.
But press releases show it went public, kinda, when it backed into Canadian investment vehicle Brisio Innovations Inc last year, in a deal worth $9.5 million.
It’s now listed on the Canadian Securities Exchange, an alternative investment market, with the rather catchy ticker “URL”.
Given the rapid DUM growth, one might suspect an over-reliance on bargain-bucket new gTLDs, but that does not appear to be the case. About three quarters of its names in September were in .com.
The company credits word of mouth for its recent growth successes, and there may be some truth in that.
NameSilo performed well each month last year in terms of net transfers, often in the five-figure range. It ranked fifth in those terms in September across all gTLDs, beating the likes of Google, NameCheap and AliBaba, with almost 15% of its 90,000 net new DUM coming from transfers.
Given the much larger number of attempted adds and grace period deletes NameSilo experiences every month compared to its similarly sized peers, I rather suspect a lot of its new business is coming in via drop-catching.
The company offers customers API-only access to its platform for drop-catching deleting domains, among other purposes.