I am in awe of the success of Swetha Yenugula. Swetha has built a great .XYZ domain name portfolio, and she has shared many impressive domain name sales. Unfortunately, Swetha reported yesterday, her six figure sale of Byte.xyz was canceled by Afternic because the platform was “not able to verify the buyer’s funds.”
https://t.co/mOIOOAni3K sale was cancelled after 10days. Due to the lock I was not able to transfer it till now. I would like to know the reason from the buyer, if they wanted to share their version. @Afternic @godaddy @PaulENicks @xyz pic.twitter.com/0TjuIR84je
— Swetha.xyz (@DomainNameGear) July 26, 2022
In looking at the original templated email received by Afternic, Swetha was informed that Afternic was ready for the domain name to be transferred. Perhaps wrongly, I always assumed this meant the funds from the payment had been received. With a six figure deal like this, I also assumed the funds would have to be sent via wire transfer. If the funds are in and the transfer has been requested, I am not sure what remains to be verified by the platform more than a week after the sale.
Swetha mentioned that she could not push the domain name right away because it was locked. I would be curious to know if Afternic could cancel the sale post-transfer. I am inclined to believe they can. Perhaps that is the reason for why they don’t send payments immediately.
With GoDaddy’s acquisition of Dan.com, it will be interesting to see if the company’s speedy payment process is impacted at all. Attorney John Berryhill shared some thoughts about that in my article about the sale.
Importantly, I want to give a shout out to Swetha for sharing that this deal was cancelled by Afternic. Swetha could have kept the cancellation to herself, allowing the sale record to remain public as a major comparable sale to help her portfolio. She was transparent about the cancellation, and that deserves praise because some people would have brushed it under the rug and used the comp advantageously.
It’s a bummer for Swetha that the sale did not go through. It’s also a good reminder to investors who sell via Afternic that a sale email doesn’t always mean the deal is done.