How precious is your ENS to you? Well, to The Sandbox, maybe not that important because the metaverse platform let their ENS expire. Now, someone else owns the sand.eth.
What Happened to The Sandbox’s ENS?
On a Twitter post, an account named 065.eth (@address_eth) who sells ENS domains on OpenSea said someone bought sand.eth 7 months ago for 4.9 ETH. Then the person let it expire and someone registered now for a 6.4 ETH premium.
Later on, the Web3 community found out it was The Sandbox who initially bought the ENS for around $21,000 at that time of transaction. Now, it doesn’t have its ENS anymore.
What Are ENS Domains and Why Are They Important?
The Ethereum Name Service is a “distributed, open, and extensible naming system based on the Ethereum blockchain”. Basically, an ENS allows users to make simple and memorable names for their wallet addresses and decentralized websites.
So, instead of a long list of letters and numbers as your blockchain address, you can simply use your ENS domain to manage all your tokens and NFTs. Having an ENS domain makes it much easier to manage your blockchain transactions.
ENS domains are also scarce. Most are already taken and the good ones are expensively priced. To give you an example, RTFKT bought the domain dotswoosh.eth for 19.72 ETH or approximately $35,000.
Additionally, in April this year, people spent 2492 ETH ($7.3M) registering ENS domains and 169 ETH ($510k) on renewing them, showing its increasing demand in the crypto and NFT space.