Thoughts

Andrew Miller

June 25, 2023

The Domain Market’s “Quiet Times”

We often write about our deals that close, successes, future opportunities. Sometimes, it’s important to discuss the times I call the “quiet times.” After a blockbuster Q1, where Hilco Digital Assets oversaw transactions for Sweepstakescom, Chocolatecom, and Chat*com, Q2 has been quieter. I have had conversations with countless peers, and most echoed the same sentiment.

It is not because of a lack of opportunity or certainly hard work. It is just how ultra-premium domain names roll. Sure, the economy is tighter, but I have been investing in domains for 25 years and have seen this cycle before. Domains provide the strongest returns of any asset class but, even in the best of times, are also less liquid.

They require immense patience, whether selling or buying a domain. It is in these “in-between” times that the many conversations we have with those we advise are so meaningful. I call it “marinating.” Domains need to marinate, and when the time is right for the transaction, it will happen.

We put so much effort into casting a wide net to high-level decision-makers and making sure that we plant seeds that we know will blossom with time. I have been speaking with a large company for two years regarding buying a very valuable domain, with assurances it will be us when ready. This week, two clients acquired two of the most valuable domains on the Internet; one took 10 months, and one took 16 months from start to finish. Patience, my friends, pays off.

Bored Ape Yacht Club and Yuga Labs

It has been a while since I wrote about the Bored Ape Yacht Club. I have been bullish on BAYC and Yuga Labs. I believe in their positioning, leadership, and their most important early collectible NFT products, Cryptopunks and BAYC.

Yet, crypto has been under fire, and early NFT products are mostly dead (as predicted many times). Those who got “paper rich” quick with BAYC and held for the long term are being tested. My main concern for Yuga is focus. They have been quiet on Bored Apes, and have not yet delivered on parts of the roadmap promised. It is likely an all-time buying opportunity here, but I would like to see Yuga be proactive and get back to focusing on what got them here in the first place.

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