We recently reported on a fraudulent scheme that is actively used at GoDaddy auctions, where domain names whose registration has not been renewed by their previous owners are sold. According to the trading platform’s rules, if the auction winner does not pay for the domain within the allotted time, the lot automatically goes to the second highest bid maker. Unfair bidders skillfully take advantage of this: one offers very modest money for a promising domain name, while the other immediately makes an extremely high bid.
TLD Investors reported on this puffing technique, which was recently used at the auction for SsangYong.com. The name Ssang Yong was created by a large South Korean automobile company, which manufactured SUVs. But at the end of 2020 it filed for bankruptcy, and in 2022 the business came under the control of a consortium led by KG Mobility. At the same time, it was decided to rebrand and change the name to KG. Thus, the previous owners did not need the domain any longer. However, the domain is still very popular: first, the brand has many fans who value its “old time” name. And second, Ssang Yong means “Double Dragon,” and people know that these mythical creatures play an important role in Asian culture.
The auction winner offered a very impressive sum for the domain, $46,000, but never paid it. As a result, the domain went to the person with the second highest bid, $135. That is, the domain name “fell in price” by 340 times in a few hours. There is little doubt that this fraudulent scheme was used, especially since the domain is already up for sale at Afternic. It is unclear why GoDaddy has not taken any measures to suppress this practice of puffing.
