Cybersquatting is a person who takes the lead in registering an Internet domain name containing the trademark of a famous company or celebrity, and then sells it to the company or celebrity at a high price to make huge profits.
Domain names are called virtual real estate in the online world. The Internet population in English-speaking countries such as Europe and the United States generally uses the keyboard to enter words or phrases directly into the browser address bar. The habit is much higher than entering words into search engines.
Therefore, a familiar one-word domain name is like a storefront in a top downtown area in real society, with an endless stream of uninvited visitors, so there is an astonishing amount of traffic without the need for advertising. These benefits are reflected in the website's value.
So commonly used words and combinations of words that can be thought of have already been registered, which is a very common economic behavior. The goal of Internet cockroaches is to register company trademarks and names, and domain names in the Internet economy. There is a clear difference in investing.
Causes of the emergence of network cockroaches:
The term "network cockroach" originated from Europe and the United States, because when the Internet was just emerging, the international domain name management organization adopted the "first apply, first come first" approach. "Register, use first" method, and domain names only require a small annual registration fee. As long as you continue to register, you can hold the right to use the domain name.
Therefore, speculators rush to register domain names with the same company name or trademark name, and want to sell them back to the original company at a high price. This behavior is the birth of the Internet cockroach.