Since their inception in 1985, domains have revolutionized the way humans interact online, providing a unique digital identity for individuals and organizations. Domains have one primary function: to make things more accessible on the internet by converting lengthy IP strings to short, human-readable addresses. Domains have not only reshaped the digital landscape but have also generated a large amount economic value, with many domains becoming highly sought-after assets. In fact, domains are considered by many to be one of the first digital assets to ever exist. While most internet users take domain names for granted, there is a lucrative market surrounding these digital assets that remains relatively obscured to the general public. It’s a strange concept but experienced domainers are selling domains for hundreds, thousands, and sometimes even millions of dollars. 

But these instances of big domain sales happen few and far between. A large portion of the domain market suffers from illiquidity. This means that unlike stocks or bonds, which can be readily bought and sold on exchanges, domains can be difficult to offload quickly and at a fair price. This illiquidity stems from a couple of factors. First, domains are an obscure asset class, one that doesn't have a lot of direct comparisons in the traditional investment world. Unlike established assets like stocks or real estate, there's no clear-cut valuation model for domains. They are unique, one-of-one assets, each with its specific characteristics. This lack of fungibility means they can't be easily replaced with an identical asset, making them challenging to price objectively. 

As a result, a beginner domainer attempting their first sale is unlikely to find an immediate buyer at the price that they are looking for. This is why comparable sales data and mechanisms like auctions are essential components of the domain market. These tools provide a framework for valuing domains based on similar past transactions and create a competitive environment that can attract more buyers. 

Enter GBM Domains, a domain marketplace that harnesses the power of blockchain tech to deliver a transparent, instantaneous, and user-friendly experience. By using tokenization, the platform ensures the verifiable ownership of digital assets. Unlike physical assets such as real estate, which pose challenges in tokenization due to their tangible nature, domains are digitally native, making them ideal for seamless transfer on blockchain platforms. GBM leverages the lightning-fast settlement capabilities of the Base blockchain to transfer ownership, outpacing traditional platforms. Base, a Layer 2 protocol built upon the Ethereum blockchain, offers a scalable and efficient platform for decentralized applications. Ethereum's widespread recognition within the Web3 space, thanks to its smart contract and DeFi capabilities, further solidifies the platform's credibility and potential for widespread adoption. 

GBM uses Smart Contract technology to enable an incentivized bidding mechanism known as "Bid-to-Earn." This innovative and unique approach ensures that every domainer has an equal opportunity to win, not just the people with the most money. When a user places a bid on a domain, they will either win the domain itself or, if they’re outbid, they’ll receive their original bid back plus an incentive payment on top. This model not only incentivizes active participation but also guarantees that all participants benefit from the auction. For buyers, this means that even if they don't win the domain, they can still reap financial rewards from their involvement. For sellers, this Bid-to-Earn model creates a more engaging and dynamic auction environment, potentially leading to higher bids and ultimately, a more favorable outcome. By democratizing the auction process and ensuring that everyone has a stake in the game, GBM fosters a more equitable and rewarding experience for all parties involved. 

Although GBM is fairly new to the domain scene, having only launched a few months ago, it has already attracted the interest of notable domainers such as Page Howe and Andrew Rosener, with the latter featuring GBM’s co-founder Hugo McDonaugh on the Domain Sherpa podcast.

Hugo shared his thoughts with us:
“We are very excited to be making waves in the domain space, as we look to improve the way domains are traded. We believe that our auction model is the best price discovery tool out there and it is perfect for digital assets like domains, which are often difficult to price. Our platform also offers dramatically lower commission fees (1% or 5% depending on the type of sale) than the more established marketplaces, who charge their users up to 30% of a sale. Receiving the recognition of the top domain trader in the world, Andrew Rosener, is something that we are immensely proud of.” 

The interest in GBM Domains comes from two subsets of the domain ecosystem, traditional domainers who have been trading digital assets since the early 90’s and a newer generation of investors who have been exposed to the rise of cryptocurrency and non-fungible tokens. The similarities between the two assets pique the interest of those who like having digital assets in their portfolios. For experienced traders, GBM Auctions presents a novel opportunity to leverage blockchain technology to buy and sell names instantly, instead of waiting days for a transfer. For the crypto enthusiast, it allows them to explore a more mature asset class, one that has helped establish the credibility of online companies since the advent of the internet. 

The use of blockchain resonates with investors, who are already familiar with the advantages of transparency, security, and instant settlement offered by cryptocurrencies and NFTs. The appeal of GBM Domains lies in its ability to merge these modern digital asset trends with the traditional domain market, creating a platform that bridges the gap between Web 2 and Web 3. This mix between the old and new worlds of digital trading offers a unique opportunity for both experienced and novice investors to explore the domain market from a fresh perspective. 

The main hurdle facing GBM Domains is the complexity of blockchain for first-time users. However, by offering comprehensive support, tutorials, and customer service, the platform aims to bridge the gap between traditional domain trading and modern blockchain functionalities. As more users become familiar with blockchain technology and the Bid-to-Earn model, the learning curve will flatten, making the platform more accessible over time. It is worth noting that the GBM Domains team recognises the hurdle and besides offering the aforementioned support features, have also implemented the Coinbase Smart Wallet, which makes the process of setting up a blockchain wallet a far simpler process than other methods. GBM Domains has alluded to the implementation of fiat payment options, meaning their users will be able to trade domains without needing to touch cryptocurrency at all. 

GBM empowers its users to explore the full potential of domains, not just as website addresses, but as versatile assets with wide-ranging applications. As GBM Domains continues to grow and develop, it promises to usher in a new era for domainers, an era in which everybody wins.

If you’re interested in learning more about GBM Domains, head to their website at: https://gbm.domains

Or check out their trailer here: https://youtu.be/XacPoYV2uC4?si=7z49_ediHsQGcsw8

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