Like an elephant in the room, the 4 letter domain craze can’t be ignored anymore. While most of the average names were worth anywhere from $10-40 for many years, the values seem to have risen to between $150-200+ within the past few weeks. Everyone seems to want to get their hands on these names, and although I don’t see a reason for the rise in value other than speculation. I’ve seen all the arguments about why they have considerable value and why people are buying them so rapidly:
- – End users want them because there are many acronyms
– Many stock symbols are made of 4 letters
– Easier to recall than longer domain names
– They are rare
– There aren’t any left to register
The impetus came a few months ago when a domain investor decided to buy the remaining LLLL.com domain names that were available to register. When people saw that these names were no longer available for the registration fee, they began paying much more to acquire these names. The values rapidly rose, and now we are at price levels that I believe may be unjustified.
Although I own a few of these names and I have friends that own them as well, I think the hype is