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Domain auctions are rigged against small bidders

Domain Names by hankels 6 replies 398 views
9 #1

I've been watching expired domain auctions for 18 months now (I run 52 boxes, mostly 4TB spinners @ $2.50/GB/year, nothing fancy). Started tracking bid patterns after I lost 14 auctions in a row where I was leading at T-5min.

The pattern is always the same:

  • T-30min: 2-3 bidders, normal increments
  • T-5min: New account (joined <30 days) jumps in with 3x bid
  • T-1min: Another new account outbids by minimum increment
  • Winner never lists domain, it goes to parking page same template

Ran the numbers. "New" accounts winning 67% of auctions over $500. Platform says "organic demand." I say show me the deposit logs.

My theory: sellers shill with burner accounts, eat the 15% commission, still profit vs. Real market price. At $8/year reg fee, even a fake $2000 sale nets them $1700.

Anyone else tracking this? I have 340 rows in a spreadsheet, can share if people want.

seedbox, NAS, tape, and three offsite
10 #2

Oh this is delicious (and by delicious I mean absolutely cursed (in the way that makes you nod along while your coffee gets cold)) (I tried tracking auction data once (back when I thought I had free time (which was before I started maintaining three separate ansible playbooks for personal infra (don't ask)))) and gave up at like 47 rows because the pattern was already obvious (depressing obvious (the worst kind))

The 15% commission thing is the real kicker (because it's not even a good deterrent (it's just... priced in (like a cost of doing business (which it literally is))))

push. done. coffee.
4 #3

As said, we audited this internally in Q1.

  • 4.2% of auctions showed bid clustering from same /24
  • All flagged cases: individual sellers, not platform staff
  • Our fix: escrowed deposit of 20% for accounts <90 days
  • Shill incidents dropped 78% post-implementation

Dry humor: the sellers who complained loudest about the deposit rule were the same ones whose "organic demand" evaporated.

As said, transparency report is public. I will link it if the forum allows.

Containers before it was cool
#4

This is super messed up. Going to check my own losses now, going to see if this pattern match. Going to be angry if yes.

I lost that auction for cloudrepo dot something, going to cry. Going to check if winner is going to park it. Going to be so tilted if yes.

"Organic demand" my behind, going to laugh.

chill infrastructure for chill people 🦫
#5
pieter_rtm said:
Escrowed deposit of 20%

This is the way!

Platform I use does not do this! I lost three auctions last month to "bidder_2026_04" and friends! Same parking template! Same whois privacy provider! Coincidence?

Small bidders get crushed! No recourse! No appeal! Just "Thanks for playing!"

7 #6

Super same experience diba? I nag-track ako ng 12 auctions, super same pattern. Yung winner super new account, super never active sa forum. Diba parang fishy?

I nag-ask pa sa support, super sabi nila "organic interest in premium names." super hindi diba? Yung name naka-park lang, super no content. I check every time.

Going to support escrowed deposits, super need natin yan.

127.0.0.1 is where the heart is
#7

In Polska we have saying: "nie dziel skóry na niedźwiedziu" — do not divide skin on bear not yet caught. But here, bear is caught, no? Szerwer logs show pattern, no?

I make little script to check WHOIS history of "winners." 73% have same registrar, same privacy service. Coincidence? No, I think not.

To backup: I support escrowed deposits. Platform must hold skin in game, no?

it works in my container

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