Shane Cultra: A Journey Through Domains
His entry into the world of domains was somewhat accidental, starting in 1999 when he bought a domain for his daughter...
Author: Cryptoreporter.eth
Shane Cultra is a man who never planned to be in the domain space. With a family business dating back to 1865, he initially pursued a career as a professional trader at the board of trade. However, like every generation before him, he found himself drawn back to running the family nursery.
His entry into the world of domains was somewhat accidental, starting in 1999 when he bought a domain for his daughter, Elizabeth Bryant. This purchase sparked his interest in domains, particularly four-letter dot coms, which he found traded similarly to the stock market.
Since 2008, Cultra has dedicated an hour or two every night to domain names. This dedication led him to start writing daily posts for DSAD in 2009, with only ten days missed since then. His commitment to learning and growing in the domain industry is evident, with over 10,000 hours invested in his craft.
When asked about his journey from the financial industry to domains, Cultra explained that almost no one in the domain industry starts out solely in domains. His own background includes obtaining his series seven and series 63 certifications, with the initial intention of becoming a broker. However, he found the experience to be similar to selling insurance, which led him to explore other avenues.
Shane Cultra's journey from the pits of the financial industry to the domain market has been a fascinating one. At just 23 years old, he sought a $1 million investment to start trading, despite never having traded before. This bold move gave him a valuable background in the buy low, sell high concept, teaching him firsthand the dynamics of trading in a crowded, competitive environment.
Transitioning from the chaotic trading pits to the world of decentralized trading, Cultra witnessed a shift where technology and knowledge became more important than size or connections. He emphasizes that decentralization is leveling the playing field, allowing those with superior technology and knowledge to succeed, regardless of their background or connections.
Cultra's interest in domains began when he discovered that four-letter dot coms traded like stocks, with varying quality and value. This realization led him to take domains seriously, especially when he saw the potential value in them. However, he notes a challenge in the domain industry: the lack of standardized value metrics. Unlike other assets like houses, domain sales are often private, making it difficult to determine their true value.
Despite the challenges, Cultra remains passionate about domains and their potential as digital assets. He acknowledges that while resources like Namebio and DN Academy provide valuable information, much of the domain market remains undiscovered by the wider public. His journey exemplifies the evolving nature of financial markets and the opportunities that arise from understanding and adapting to new technologies.
Cultra delves into the intricacies of domaining and offers valuable insights for newcomers. He emphasizes the importance of money management in domain investing, noting that while it's easy to buy domains, spending wisely and managing one's bankroll are crucial.
Cultra provides some key figures to keep in mind when building a domain portfolio. For example, the average price of a domain that is likely to sell is around $450. He also mentions that the sell-through rate for such domains is typically between 1.5% to 1.7%. These numbers can vary based on the type of domains you buy; higher-end domains may have a higher sell-through rate, while hand-registered domains may have a lower one.
Patience is another essential factor in domaining, as some domains may take years to sell. Cultra cautions against expecting instant sales, even with the advent of blockchain technology. While blockchain can facilitate instant transfers, it doesn't guarantee instant sales. Success in domaining requires patience, money management, and a willingness to learn and adapt to market trends.
When asked about the transition from domains to crypto, Cultra highlights that many domain investors are also heavily involved in crypto. He mentions friends like Drew Rosner and Mike Carson, who are pioneers in both the domain and crypto spaces. Cultra himself got into Bitcoin early, under $5, through the influence of friends in the domain industry.
Cultra sees domain names and blockchain as complementary digital assets, each with its unique utility. He believes that domains serve as gateways to digital identity and utilities, making them valuable assets in the digital world. Understanding the utility of both domains and blockchain is key to recognizing their potential as digital assets.
Shane Cultra sheds light on why some people gravitate towards crypto over domains. He explains that most people are users, not business builders, and therefore may not understand the true value of a domain name unless they have bought or sold one. Unlike crypto, which has garnered widespread attention, the domain industry remains somewhat under the radar for many.
However, Cultra notes that the domain industry is essential for anyone looking to establish an online presence. Whether you're a new business owner or simply trying to name your business, the cost and availability of domain names quickly become apparent. Despite the industry's relative obscurity, it is a vital component of the online world, and anyone seeking an online identity must engage with it.
Shane Cultra discusses the future of domains in light of advancements in technology such as accepting crypto, fractionalization, and taking out loans. He emphasizes the need to solve problems, such as instant transfer and payment, which have been addressed by technologies like Ethereum Name Service (ENS) and decentralized finance (DeFi). Cultra also highlights the importance of security and trust in tokenization processes, as the tokenizing party must be trusted to secure the original asset. He predicts that the general public will not necessarily be aware of assets being tokenized on-chain but will benefit from faster and more efficient transactions. As more assets, including domains, are tokenized, Cultra believes that trust in the tokenizing parties will be crucial for the success of these processes.
Shane Cultra discusses the potential future market for taking out loans on domain names, likening it to peer-to-peer lending protocols like Arcade. He believes that quality domain names will be tokenized and used as collateral for loans, similar to other digital assets. Cultra anticipates that while interest rates may be high and loan amounts may be lower than the domain's total value, the ability to quickly secure a loan against a domain name will become commonplace. He predicts that this market could become a billion-dollar business industry.
To Listen to the full interview click here: https://x.com/namefi_io/status/1773344254296748325
Well written 👍