I've been doing a lot of research lately on the domain industry and have noticed a frequent theme. Many domainers often state that domain names are the first version of an NFT. Rick Schwartz, the domain king, once said, "DOTCOM" Domains are the ultimate NFT and so much more." This comparison is not merely speculative; it reflects a fundamental shift in how digital assets are perceived and valued. Unlike many NFT projects, domain names serve a practical purpose—they are the virtual addresses of the internet, facilitating online presence and communication. Yet, the majority of people have no idea that this industry even exists.
Rick Schwartz is one of many domainers who have made the comparison. Andrew Rosenor, the Founder of Media Options, is known for brokering the domain sale of x.com to Elon Musk. Rosenor, referring to the domain name Satoshi.com, stated "It is the most valuable #NFT in the World and it is a 1 of 1 asset."
Michael Saylor, who sold voice.com for 30 million once stated that .com domains are "the primary blockchain for domains" and noted, "just like bitcoin is the strongest cryptocurrency, .com is the strongest domain thread."
Domain names were one of the first digital assets, which is why a majority of domainers are also involved in the crypto space. Both assets are digital, portable, and scarce. However, one of the key challenges facing the domain industry has been liquidity. While domain names possess intrinsic value, converting this value into readily accessible capital has historically been challenging.
Rosenor is taking the necessary steps to help grow this asset class. and help solve the liquidity problem. His newest venture with Rally Rd gives people the ability to invest in the domain name MJ.com. By Fractionalizing the asset, he has given people the ability to have part ownership of the domain. In a Recent Twitter Space, Rosenor stated that "suddenly they become real collateral. There's a mark to market price." He goes on to explain that " in theory, we should be able to get to a bank and say hey, I own XYZ number of shares of a domain name that's trading. Here is the mark-to-market price, i want to take out a loan against that equity in the same way I can take a loan against my stock portfolio."
Rosener's vision of domain names serving as collateral for loans echoes the evolution of traditional financial markets, where liquid assets such as stocks are routinely used to secure financing. The ability to leverage domain ownership as collateral opens up new avenues for capital, further legitimizing domain names as valuable asset class.