Tucows Domains continues to tread water, company comments on blockchain domains – Domain Name Wire

Its domain name business was down a bit in the last quarter.

Tucows’ (NASDAQ: TCX) domain name business continues to tread water, the company reported today.

Domain business revenue was $61.1 million in the second quarter of 2022, down 2% from the same quarter a year ago.

Dave Woroch, CEO of Tucows Domains (one of Tucows’ three businesses), said this was to be expected given the hangover from the pandemic surge in domain registrations. In a pre-recorded analyst briefing, he pointed out that Verisign reported a 14% year-over-year decline in new .com and .net registrations in the second quarter. He does not expect outsized growth in the domain industry, at least in traditional domains.

Woroch commented on Unstoppable Domains raising $65 million. The cycle valued the company at $1 billion, which is more than Tucows is worth. (Granted, the terms of a private company fundraiser can artificially inflate the valuation.)

Tucows officially supports Web3, but thinks that particular effort is flawed. Woroch said:

In its simplest form, Unstoppable Domains offers domain name registrations in chains such as .crypto and .nft. I don’t want to be too technical in an appeal to an investor, but these domains don’t work without special software that needs to be installed to use them. This is called “using an alternate root”. People have been trying to pitch alternative roots since the 90s, and there’s just too much of a chicken and egg problem.

We have already discussed our views on Web3. We are fans. What’s most interesting about this news is that it shows that investors appreciate the relationship between domain names and identity. Although we don’t believe in this particular effort, we think they do some interesting things, albeit with fatal flaws, but nonetheless, we think a lot about the relationship between domain names, identity, and Web3 .

Woroch said any experimentation with Web3 at Tucows will likely take place in its domains business.