Is Web3 better than Web2 for investors? Evidence from domain name auctions
Publication Type
Conference Proceeding Article
Publication Date
7-2023
Abstract
Blockchain-based assets are commonly believed to attract new investors. To investigate this claim, we compared investor preferences for Web2 and Web3 domain name auctions by analyzing daily auction patterns in Namecheap and OpenSea. Our results indicate that Web3 platforms may attract extreme investors with low or high values as a niche market. We found a significantly higher number of bids per auction, higher average bid prices, and greater price spreads on OpenSea, but a significantly lower number of unique bidders per auction. Our findings highlight the importance of considering the auction platform's characteristics and asset context when evaluating bid patterns and predicting bid prices. This study serves as a starting point for future research in this emerging market and offers directions for further investigation.
Keywords
Web3, domain name, auction, platform, investor preference
Discipline
Information Security
Research Areas
Cybersecurity; Information Systems and Management
Publication
Pacific Asia Conference on Information Systems 2023
Publisher
AIS
City or Country
Nanchang, China
Citation
KE, Ping Fan; LAU, Yi Meng; and HANLEY, Daniel Varghese.
Is Web3 better than Web2 for investors? Evidence from domain name auctions. (2023). Pacific Asia Conference on Information Systems 2023.
Available at: https://ink.library.smu.edu.sg/sis_research/8336