Today marks the official launch date for Fusu, the world's first
Domain Stock Exchange. Before you run off
and start buying partial ownership in premium domain names, let's take a
look at how it all works.
Fusu uses the concept of the traditional stock exchange and applies it to the
Domain Names industry by providing a trading platform for owners, shareholders
The holder of a premium domain name can decide to monetize a fraction of its
value by listing it at Fusu, generating cash flow without having to relinquish
any right on the domain itself. In turn, "share holders" get a fraction of the
sales revenue when the domain is eventually sold. Since parking domains provides
little in the way of liquidity (cash), selling domains is a reliable choice, as
most domain increase in value over the years. Enter Fusu. Domain investors and
speculators can get in on a piece of the action.
"Going public" as Fusu happens when the domain owner sells shares of its domain
to the public for the first time - called an Intitial Domain Offering, or IDO.
Domain owners indicate how many shares to sell and the price. Approval is based
on verification of the domain owner, fitness of the domain and realistic market
value. Once approved, investors can buy shares and sell them on Fusu.
Pretty innovative all the way around.