Are new domain names (gTLDs) such as .xyz and .io still worth investing in?
domain platform editor
In recent years, with the exhaustion of .com domain name resources and the continuous development of the Internet industry, a large number of new generic top-level domains (gTLDs) such as .xyz, .io, .ai, and .app have gradually emerged and triggered a boom in the investment market. Among them, .xyz and .io are particularly favored by startups, technology companies and investors, and many domain names are even traded at high prices of tens of thousands of dollars or even millions of dollars. So, do these new domain names really have long-term investment value?
1. .xyz domain name: from "cheap" to "hot"
.xyz was founded by Daniel Negari and was initially promoted with the concept of "anyone can register" and relied on Google to boost its global influence. Google's parent company Alphabet launched abc.xyz in 2015, bringing the .xyz domain name quickly into the public eye.
Since then, a large number of Web3, blockchain, and AI startups have chosen to use .xyz, such as:
Starship.xyz (blockchain project)
Block.xyz (Square's renamed brand)
Animoca.xyz (a well-known Web3 game company)
.xyz domain name advantages:
The price is relatively low and the investment threshold is not high.
It is favored by the Web3 and AI industries and has a large market demand.
In recent years, there have been many high-priced transaction cases, such as Go.xyz (a $1 million transaction in 2022).
.xyz domain name disadvantages:
It still lacks sufficient global brand recognition, and most companies still prefer .com.
The renewal cost is slightly higher than that of traditional gTLDs, which may affect the long-term holding cost.
The return on investment is unstable, and some early hype domain names have not been realized.
2. .io domain name: the darling of the technology industry
.io was originally the country code top-level domain (ccTLD) of the British Indian Ocean Territory, but because of its simplicity, easy to remember, and similar meaning to "input/output", it has been widely accepted by the technology industry, especially startups and developer communities.
Well-known terminal use cases include:
Segment.io (data analysis company, later acquired by Twilio for US$3.2 billion)
Opensea.io (the world's largest NFT trading market)
Coin.io (blockchain-related platform)
.io domain name advantages:
Technology, blockchain and Web3 industries have a strong demand for .io.
High-quality .io domain names have seen large transactions, such as Matrix.io (six-digit transaction in 2023).
.io has been accepted by the international market and can replace .com in some scenarios.
.io domain name disadvantages:
The price has been pushed up by the market, and the investment threshold has increased.
As a ccTLD, its long-term stability is uncertain and is greatly affected by policy changes.
Brand protection is not as good as .com, and some companies will still give priority to repurchasing the .com version.
Conclusion: New gTLDs are still valuable, but investment should be cautious
.xyz and .io are still the most noteworthy new gTLDs at present, especially in the fields of Web3, AI and technology. They have established a certain market awareness and have seen high-priced transactions. However, compared with traditional .com assets, these new domain names still have certain uncertainties, and investors need to pay more attention to market demand, terminal acceptance and long-term stability.
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