A Fusu IDO Auction is the process of auction that allows the allocation of shares and the finding of an initial share price before an Initial Domain Offering.

In a Fusu IDO Auction, users bid to buy shares of a domain at a certain price.

Here is an example: A domain owner lists 45% of domain.com at Fusu with an initial domain value of $10,000. A user could then say that he or she is willing ot buy 100 shares of a domain at $1 per share. If all shares (4,500 in the example) can be placed using this auction process, then the domain will be listed on Fusu.

A graphical illustration of this concept can be seen in our Flash Tour.

The domain market is growing rapidly; by buying shares, you can diversify your investments and decrease the risk that you would have when relying on single expensive domain names. Over the longer term, shares can produce significant capital gains through the increase in share prices.

Yes, you can, just like on a traditional stock exchange. This is a high risk investment, and the domain may be taken off the Exchange because of UDRP proceedings or other unforeseen factors. On the other hand, you have this risk when buying a domain directly. By investing in shares, you are not registrant or majority owner of the domain, so you are never exposed directly to legal risks.