Ethereum name services are disrupting the digital assets space. More persons, brands, companies and influencers are looking for ways to plant their flag in the blockchain space by acquiring their own name service on the blockchain.
For those that do not know, Ethereum Name Service is a naming system based on the Ethereum blockchain that transforms long and unreadable blockchain addresses into something a human eye can quickly process and type in.
ENS inherits and implements DNS technology on the blockchain while having a completely different architecture thanks to the capabilities of the Ethereum blockchain.
By using ENS’s web application, users can send ETH or interact with other name services while not having to go through remembering and pasting long blockchain addresses.
The hotcake called ENS Domains
A record-breaking Ethereum Name Service deal happened earlier this week. According to an OpenSea page, the ENS with the address of one of the world’s biggest corporations, Amazon, could be sold at $1 million following a bid placed on the market by an anonymous NFT investor. Below is the background of the story.
On October 18, 2019, someone purchased the “amazon.eth” ENS domain for 100 ETH. It was worth approximately $20,000 at that time.
Fast forward to February 8, 2022, someone purchased the amazon.eth ENS domain for 33 ETH, $102,000 at that period.
And now, an anonymous investor offered $1 million to buy the same ENS NFT domain. If the deal goes through, the investor who purchased the digital asset in February will end up with a 1,000% profit in only a few months.
The anonymous investor who offered $1 million for this certain domain is actively known to collect various ENS domains, according to his own OpenSea page.
The account is also the owner of the domain called “omozon.eth,” which is similar to the name of Jeff Bezos’ company. However, it does not look as if the offer was accepted.
Should you invest?
As much as ENS domains are considered by many as a bridge between Web2 and Web3 because it incorporates traditional domains with Web3 and crypto, one still has to be cautious with buying them.
A fresh instance of where NFT asset buying has gone south recently is the Jack Dorsey first tweet NFT saga. Sina Estavi bought the first-ever tweet of Jack Dorsey for $2.9 million in March 2021.
Fast forward to April 2022, Sina Estavi listed it for $48 million but to his surprise and many others, the auction closed with just seven total offers ranging from 0.09 ETH ($277 at current prices) to 0.0019 ETH (almost $6).
This underscores the fact that NFT investments are not always rosy as they seem.
However, if ENS continues to be the preeminent Web3 domain, those long and hard-to-comprehend wallet addresses might go into extinction. Which indicates that you could jump into it now before it’s too late.
Nevertheless, all financial decisions should be made after thorough research and analysis. And do not forget to only invest the amount you can afford to lose.