As reported today by Elliot Silver, the NFTs.com domain name changed hands in a USD $15 million transaction.
I’ve long been a critic of automated appraisal tools. Let’s take a look at how they did valuing the NFTs.com domain name.
At the time of this article (before they can manipulate their systems to pretend they are ‘accurate’) here are a few:
- GoDaddy appraisal tool – USD $7,598
2. Estibot.com appraisal tool – USD $18,000
3. Saw.com appraisal tool – USD $48,000
4. Alter.com appraisal tool – USD $3,900
As you can tell, they are far off the actual transaction price! To summarize:
Actual Transaction Price: $15 million for NFTs.com
GoDaddy appraisal: $7,598
Estibot appraisal: $18,000
Saw.com appraisal: $48,000
Alter.com appraisal: $3,900
The next time someone misuses an automated appraisal tool in a business negotiation, laugh at them, and then send them a link to this page. And then laugh at them once more. You might want to add the words “Nice try, buddy.”
In conclusion, automated domain name appraisal tools are for entertainment value only. At best, they are used by sites to generate “leads” for someone trying to sell something, and for SEO purposes. They’re not serious tools that one should ever rely on for a “true value” or an “accurate value” or a “reliable value.”