User pays absurd price for .eth domain and says it was “for fun”

User pays absurd price for .eth domain and says it was “for fun”

The Ethereum Name Service (ENS) domain 555.eth was sold for 55.5 Ether (ETH), worth R$786,000. As such, this is one of the most expensive ENS domains ever purchased, second only to others such as wallet.eth and crypto.eth.

The new owner is a Chinese collector who claimed to have made the purchase “for fun” after the “10k” club was founded. It describes itself as “a web3 social club for holders of ENS domains from 0 to 9999”.

For now, though, they only have one channel on Discord, but that seems like enough to grab the public’s attention. Indeed, the activity of purchasing these domains is growing.

ENS activity in April 2022.
ENS activity in April 2022. Source: Dune Analytics

The reserve price for a three-letter domain has already risen to 7 ETH, equivalent to BRL 99,000 at the time of writing. Since these domains are NFTs, it’s worth noting that there are only 1,000 of them. The cost to maintain them is US$640 (R$3,150) per year, more expensive than others.

Four-letter domains have a much lower minimum price of 0.06 ETH, according to PopRank. As with DNS domains, the number of characters is related to scarcity. After all, there are 10,000 here, ten times more than three-digit domains.

In addition, ENS users received a token of the same name. Listed at BRL 86 this Friday (29) and with a market cap of BRL 1.75 billion, this is a governance token that can be used to vote on the future of the project.

ENS domains from 000 to 999 will be most expensive as of April 2022.
ENS domains from 000 to 999 will be most expensive as of April 2022.

risky investment

The project’s revenue is based on its renewal. While three-digit domains cost $640 and four-digit domains cost $160, five-digit domains or more cost as little as $5. Today, however, your biggest hindrance is Ethereum’s high transaction costs, many times higher than the cost of the domain itself.

Also, ENS are currently not nearly as popular as standard domains such as .of† However, many speculate that they will be even more valuable in the future because of their characteristics, such as resistance to censorship.

Therefore, at the moment these prices are purely speculative and such investments are high risk, even if some do it “for fun”. Anyway, the idea of ​​creating a “club” for owners of certain domains is curious, after all, it can increase demand for it.

Source: Live Coins

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