Why are 4L .COMs so cheap?

There was a time when 4L .COMs were selling in the $2,000 – $4,000 range, back then it really felt like the sky was limit and that these domains really were becoming a meaningful asset class. I wrote an article on the future of 4L .COMs back in 2016 and well, sitting here four years later I think we all know what the future held, and it hasn’t been great for 4L .COM investors.

An interesting thread has started recently on NamePros talking about this, started by Igor Mironyuk who has been a long-time reader of my blog. He kicked things off by posing the question: why are 4L .COMs so cheap now?

RJ had a really solid reply to this question that I thought you’d all enjoy as well:

They are cheap because there are 456,976 of them and not enough demand to raise the current price.

I’m glad you called them cheap, because I also think 4-letter .coms (4LC) are undervalued. They are liquid assets, which is pretty much the holy grail achievement of dominating. Even a $100 liquidation value for non-premium four-letter combinations is not insignificant, because having a reliable liquidation value means the assets can be used as store-of-value, a currency, collateral, or type of security. If a big investor enters the market, the wholesale liquidation value will assuredly go up.

456k might sound like a lot, but it really isn’t. Consider the similarity to Bitcoin that also has a limited supply of 20 million BTC. There will never be more than that. At a $150 valuation for any combination, that is only a theoretical $69 million dollar market cap (1/4 of Dogecoin’s) A wealthy investment group could easily swallow the entire aftermarket of 4LCs at this point and the prices would rise accordingly.

Chinese domain investors poured a lot of money into buying 4LC a few years ago and achieved a $1000 liquid value for domains that met their criteria. Any domain that didn’t contain a vowel or the letter V was valued at minimum $1000, and were called “CHiPs” (Chinese premium domains.) This type of $1000 valuation could happen again for all 4LC if investors around the world caught onto the concept of buying these domains as assets.

This is not investment advice of any kind, just my own personal opinion of the market.

(Source – NamePros)

I agree with RJ here, but I’m not buying any more 4L .COMs for now, still I think this is an interesting category to watch as it could spring back to life in the future. But who knows? What do you think?

{ 9 comments… add one }

  • BullS June 26, 2020, 11:32 am

    I bought tons of 4L – 5 yrs ago as low as $10 a piece.
    cbku.com
    fbuj.com
    gxnx.com
    igju.com
    jijf.com
    kojx.com
    kvlp.com
    kxvz.com
    llyu.com
    mbxy.com
    roql.com
    thuw.com
    tyzv.com
    vhvk.com
    vxnc.com
    wzwi.com
    xugl.com
    zlby.com
    zmmr.com
    zvlo.com

    so please someone tell me how am I losing money when I am getting offers as high as 6 figures $$$ on some of my 4 L domains that I turned down.
    Whatever— as long as I am making money..that all I care.

    Reply
    • BullS June 26, 2020, 11:35 am

      Yea , I bought all those from someone who claimed to be a Domain Professional that knows everything about domains….oh yeaaaaaaa..who is laughing all the way to the bank now.
      I bet you know who you are…. LMAO

      Regards,
      BullS
      MBA,PhD
      Magna cum laude
      Graduate of DKAcademy.com
      Domain King Academy

      Reply
  • Matt Holmes June 26, 2020, 1:43 pm

    Very interesting stuff, thanks for sharing that here. I had no idea how many 4Ls .coms existed/never did the math. Great content for the blog here!

    Reply
  • Gary Langol June 26, 2020, 11:32 pm

    If liquidity ever gets sucked out of this system (deflation), these ‘assets’ are simply liabilities. At least with a house that also is a liability you cover your shelter needs. These things (4Ls) are drek.

    Reply
  • Anunt June 27, 2020, 5:13 am

    There are 21 Million Bitcoin

    Reply
  • Edward Hartley June 28, 2020, 4:44 am

    Its the vowels that them cheap. The Chinese do not like vowels or the letter V.

    Reply
    • BullS June 28, 2020, 12:21 pm

      “The Chinese do not like vowels or the letter V.”
      how do you know?

      Reply
  • Edward Hartley June 28, 2020, 1:33 pm

    I sell hundreds of 4 letter domain to the chinese. There is nothing about 4 letter domains that i don’t know.

    Reply
  • Edward Hartley June 28, 2020, 1:38 pm

    The english vowels A,E,I,O,U, and V are not a part of the Chinese alphabet. I believe this is the problem. But hold on to your domains. You never know. Things change.

    Reply

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