How much do blockchain crypto domains sell for & Why are companies paying thousands of dollars for cryptocurrency domain names?

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Puma, Gucci, and Budweiser are among the companies that have already purchased a “.eth” domain. Budweiser paid $95,000 for the domain “beer.eth.” The “.eth” extension denotes that the domain is compatible with the Ethereum blockchain and is sold by Ethereum Name Service (ENS).

While ENS names are the most common suffix in Web3 since Ethereum is the most popular Web3 blockchain, several name services enable domains for other blockchains. Tezos Domains, for example, sells “.tez” domain extensions for the Tezos network.

Brands should explore owning their names across a range of blockchains, according to Mark Soares, chief marketing officer of agency Blokhaus, which works directly with the Tezos ecosystem, to increase the verification of their identity. When dealing with financial transactions between wallets, proving to users that you are who you say you are across a number of ecosystems is very vital.

But this is where things can get costly for brands.Like most NFTs, crypto domains are available to anyone with a wallet and can be bought and resold on the secondary marketplace, often for much more than the initial sale. “Axe.eth” is currently listed on OpenSea for over $120,000, and “adidas.eth” is around $18,500. Names on less popular blockchains will be far less pricey, yet the costs can still add up if another owner maintains the leverage in negotiation.

Marketing opportunities

According to Troika’s Lester, the technique of direct contact in Web3 will most likely exist between wallets, which means the addresses of those wallets will serve brands in the same manner that emails served them in Web2.

A brand can easily drop a piece of media or information—in the form of an NFT—into a consumer’s wallet, similar to an email campaign, with only their address needed to complete the send. However, if the business wants the consumer to interact with that media, it must first ensure that its own identification is obvious and verifiable.

This makes the case for owning crypto domains. A consumer is much more likely to open an NFT from “puma.eth” than 0x4b26bdf…—an Ethereum address virtually indistinguishable from all other Ethereum addresses.”There’s no better verified checkmark than “.eth,” said Lester, who noted the widespread usage of false Twitter identities as an example of something that crypto domains could prevent in Web3 platforms.

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