Unstoppable Domains is one of the leading alternative domain naming systems for NFT domains, and most users primarily purchase domains from Unstoppable Domains for the purpose of domain reselling.
As you may know, there are currently two main alternative domain naming systems available: NFT domains and MetaZ domains.
You can find a comparison of NFT domains and MetaZ domains
Unstoppable Domains is very popular among NFT domain buyers. Unlike MetaZ domains, NFT domains mainly focus on domain flipping, as it aligns with the nature of NFTs.
Domain flipping has been one of the most profitable businesses in internet history. In fact, we have already published an in-depth article on how domain flipping has become a significant trend in 2024.
The historical value of domain reselling depends on the use cases of the domains. In this article, we provide a deep analysis of the conditions related to domain flipping vs. Unstoppable Domains offering a 100% clear understanding of flipping with Unstoppable Domains.
Pros:
Unstoppable Domains was launched to give users full control over their domains using blockchain, making them resistant to censorship and allowing easy cryptocurrency payments through simple domain names. This offers real value especially as these domains simplify crypto payments.
sign for potential profit.
Cons:
For most users, the primary purpose of a domain is to host a visible website. While Unstoppable Domains can be used to set up decentralized websites, their primary focus is not on website creation. Additionally, websites created using Unstoppable Domains have not gained significant popularity yet.
Moreover, Unstoppable Domains doesn't address any unique problems in the world of website creation that would distinguish it from other domain systems.
Pros:
Unstoppable Domains can be minted as NFTs. The nature of NFTs is to be traded (flipped), and most users buy them with the intention of selling at higher prices. Many users are not fully aware of the underlying technology, so NFT domains may have a high opportunity for flipping, even if they don't provide real value.
Cons:
Minting a domain on the blockchain doesn’t inherently add special value to the domain itself. A domain name is simply a unique address people use to find websites, such as "something.com" in the ICANN domain naming system or "something.Z" in the MetaZ domain naming system. Making a domain into an NFT doesn't enhance its primary function.
Additionally, NFTs have proven to be a somewhat unstable business model. Millions of NFT projects have been released, with sellers exceeding buyers. As a result, 99% of NFTs have lost nearly all value within a few years. This could negatively affect NFT domains as well.
Unstoppable Domains is a single brand, unlike the broader ecosystems like ICANN (for .com, .net) or MetaZ (.Z, .X). This means they have complete control over their domain naming system, and no one can influence their control.
Pros:
Because Unstoppable Domains is a single entity, any issues can be directly addressed with their support team, simplifying the process.
Cons:
A true domain naming system shouldn't be controlled by a single brand. it needs to function as an ecosystem. For example, ICANN regulates the .com and .net domains, with registrars like GoDaddy and Namecheap providing services to own and host domains, and browsers like Chrome and Firefox offering access to those domains. Users can also resell domains using services like Afternic or Sedo.
Similarly, in the MetaZ domain naming system, MetaZ.org regulates the system and offers APIs for anyone to develop registrars and browsers. Namezage, as one of the best registrars, allows domain reselling across the entire MetaZ ecosystem, supported by numerous metabrowsers such as Cligor, Sifoz .
Relying on a single brand for domain flipping is not an ideal long-term strategy.
Pros:
Unstoppable Domains offers a wide variety of extensions. If someone has already registered "something.x," you are free to register "something.anything."
They have recently released several new domain extensions.
Cons:
Having too many domain extensions can dilute the value of individual domains, as buyers have too many choices. For example, recent releases like .secret on May 30, 2024 and .u on December 5, 2024have further increased the number of options.
In contrast, MetaZ domains currently have only four available extensions, with plans to release just one more (.e) in the next few years. This controlled release helps maintain domain value, making MetaZ domains more suitable for flipping.
Unstoppable Domains has reserved some domains for future release.
Pros:
This strategy might ensure the long-term viability of the Unstoppable domain naming system.
Cons:
In systems like ICANN (.com, .net) or MetaZ (.Z, .X), blocking or reserving domains is impossible. Domains are automatically generated via APIs, and anyone can register a domain as long as it's available. No single entity controls the entire ecosystem.
For domain flippers, the practice of reserving premium domains may not be ideal as it limits reselling opportunities.
In domain flipping, one of the main hassles is the annual fees. For example, if you own 100 domains at $10 each in the ICANN system (.com, .net, etc.), you must pay $1,000 annually.
Pros:
Unstoppable Domains does not require yearly payments, so you can hold onto the domains indefinitely or until you sell them, for free. This is a significant advantage.
Similarly, in the MetaZ domain naming system, there are no annual fees. Like Unstoppable Domains, you can hold MetaZ domains on Namezage or any other MetaZ registrar for free until you resell them.
Cons:
There are no downsides to domain flipping when there are no annual fees.
The domain prices on Unstoppable Domains are very high. The average domain costs around $150, and some domains like "pay.wallet," were initially priced at $1.5 million.
Pros:
There are no advantages for domain flipping with such high prices. In domain flipping, your goal should be to own as many valuable domains as possible at low prices, so high prices are a disadvantage.
Cons:
The high initial prices make it difficult to sell these domains in secondary marketplaces.
Pros:
Due to their nature as NFTs, Unstoppable Domains has been designed primarily for flipping. They even offer a marketplace for domains, and users can resell them on NFT platforms like OpenSea.
Regular domains (.com, .net, etc.) or even MetaZ domains (.Z, .X) are not specifically designed for flippers. However, Namezage has developed tools to make flipping MetaZ domains easy. Users can set their domains as premium within the MetaZ ecosystem.
Cons:
There are no disadvantages to having easy-to-use tools available for domain flipping.
Unstoppable Domains offers a unique proposition by combining blockchain technology with domain ownership, making it an appealing option for those interested in decentralized web development and cryptocurrency payments. However, when compared to traditional domain systems and alternatives like MetaZ, it falls short in certain areas such as ecosystem support and its primary focus on NFT-style domain flipping. The high initial cost of domains, the multitude of available extensions, and reserved domains may also hinder its long-term viability as a platform for domain flipping.
On the other hand, MetaZ offers a more structured ecosystem with a limited number of domain extensions, no annual fees, and broader flexibility for development and reselling. For those seeking to invest in domain flipping, the more controlled environment of MetaZ domains, combined with the tools provided by platforms like Namezage, may offer a more favorable landscape compared to Unstoppable Domains.
Ultimately, while Unstoppable Domains has its strengths, particularly in the realm of NFTs, it may not be the best option for those focused on domain reselling in the long term.