Okay, so I’ve been a naysayer when it comes to .CX – I just haven’t been able to wrap my head around why these would be valuable. Of course, whenever something is top-of-mind you end up seeing it more and more…so articles and tweets about .CX feel more in my face now than ever before.
Earlier today @Dosebuy shared a thread on NamePros which was a pretty darn interesting read IMO.
In the thread on NamePros, a user named iodex breaks down why trends form in the first place:
1. There is an irrational expectation on future demand. This is where fools convince themselves that their assets mean something in the real world. One day they wake up and find that those assets were actually useless junk, i.e. no end user utility.
2. There is genuine end-user business case and demand which is primarily driven by a need to protect the P&L (i.e. risk mitigation) or; there is utility (i.e. a benefit or tangible yield). These assets have genuine value in the real world.
3. There is emerging liquidity in this asset class. This is the point where the MBA graduates are talking about the assets in the coffee shops over their organic almond milk lattes and an excuse for real beards.(Source – NamePros)
Using this as a framework iodex goes on to talk about the fact that you can’t really equate a low number of registrations/demand now as an indicator that .CX is less functional than another TLD like .XYZ. In fact, it could be more functional but just not even close to maturity yet as the trend itself is still forming.
The argument against CX domains suggest that it serves a less functional purpose because of its current low demand. This argument is not only a text book definition for cognitive dissonance, but a misunderstanding of how business trends emerge. Whether dot.cx domains are leading the tables, or not; is a separate and irrelevant point to whether the CX domain is of functional use.(Source – NamePros)
Okay, now for my take. First, as you can tell from what I’ve written so far, I think iodex did a pretty solid job making his case here in a well-written thread. That being said, I do think it’s still too early (for me at least) to look at .CX as a viable investment opportunity.
While I do think there will be some outlier sales here and there I agree with iodex when it comes to understanding how trends form. I think .CX would need to see much stronger adoption numbers and standardized use cases to end up being truly valuable to end user buyers.
Still, all this talk about .CX has made me want to buy one or two names, price them at $10k or higher and just sit for ten years and see what happens. If I do that though, I’ll be honest with myself and know that with those names I’m not investing, I’m gambling…