Successful launch of Fusu with an investment of over $85,000 for three fully subscribed Initial Domain Offerings (IDO).
For the first time in the history of the domain name industry, fractional ownership of premium names is now open to everyone. Previously, an investor had to pay full price for a premium name or be lucky enough to be invited into closed investment circles.
With the Fusu Domain Stock Exchange, everyone can now own a fraction of a premium name. During the last T.R.A.F.F.I.C conference in Las Vegas, Investors jumped at the opportunity to buy a number of domains such as Eel.com, owned by the Castello Brothers (David and Michael Castello), who possess one of the best domain portfolios in the world and were recently awarded the 2008 Domainers Choice Award for Domain Ambassadors, and Flowers.mobi, owned by the legendary Rick “Domain King” Schwartz.
The Castello Brothers sold 10% (or 25,000 shares) of Eel.com in an IDO oversubscribed by 16% and valuating the domain at $250,000.
“We are quite pleased with the success of the Initial Domain Offering of Eel.com and welcome the twelve new shareholders,” says David J Castello. “Our immediate goal is to make Eel.com the premier outlet for all eel skin products especially imported Korean eel skin wallets, purses and accessories.”
Nine investors joined Rick Schwartz’s investment in the future of the dot-mobi extension, subscribing to the IDO that valuated the domain at $250,000. Rick had acquired the domain for $200,000 in one of the most controversial deals of 2007. If he sells the domain, the nine shareholders will get 10% of the sale price.
The placement of 15% of Warning.com was also fully subscribed, valuating the domain at $250,000.
All three domains are now trading regularly on the Fusu Exchange.
Interestingly, the Initial Domain Offerings of the lesser evaluated Rvx.com (proposed value: $5,000) and Recycle.it ($150,000) were not successful because not all shares could be placed. It appears that domain investors are more attracted to high value “blue chip” domains backed by industry leaders at this time.
Other interesting facts:
- 50% of the winning bids came from smaller investors buying 500 shares or less.
- most investors come from the USA and India.
- in the 10 days after launch, 207,928 share transactions were executed on the Exchange.
Fusu is the world’s first Domain Stock Exchange. Founded in 2007 and publicly launched in February 2008, its mission is to bring fractional ownership to the domain industry through a liquid, professionally run financial Exchange.
More information on Fusu and this announcement is available from www.fusu.com/blog/fusu/eel.com,-warning.com-fully-subscribed