Anybody who has looked up a Web name for registration knows how frustrating that task can be. Even with the new .us, .eu, .info domain groups available, its hard to find good web names. And here is one reason why – a few privileged registrars are tying close to 32 million names per month to scam and find the most “productive names” for temporary advertising websites. The scheme, called domain kiting, allows registrars to hold for 5 days a webname which they put a website filled with web advertisements. Two out of 1000 thousand prove profitable enough for the registrar to retain – the rest are cancelled with a full refund before 5 days elapse. So unscrupulous registrars are mopping up “good web names” and holding millions of others in temporary escrow unless you happen to get there between cycles.
Not good. Check out all the details here.