Auction Fraud at Dynadot? (8.Viewing)

MapleDots said:

Give the next highest bidder the right to take or restart the auction

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Here is the actual email that I sent to
@dynatodd
the CEO this morning at 7:46am PLEASE RETWEET!

I tried to handle this quietly and professionally. But what’s happening at
@Dynadot
affects everyone in the domain industry.

Their current auction policy rewards fake bidders and punishes real ones.

I’m making my letter public so no one else gets burned.

Hi Todd,

I’m writing to you personally because I don’t want this to turn into a public spectacle. I’ve always tried to do business in good faith, and I’ve supported Dynadot for years. But the policy I’ve encountered here can destroy the very trust that keeps your company alive.

In the auction for http://coinbook.com, a bidder failed to pay. That means every bid that person made was invalid from the moment they clicked the button. Yet under Dynadot’s current policy, I’m being asked to pay the inflated price created by those fake bids.

To put this in perspective, imagine a real estate auction where a home is bid up to $3.5 million and later it’s discovered that every bid above $1.5 million was phony. No auctioneer on earth would expect the legitimate bidder to pay $3.5 million. They’d be out of business before the crowd left the room.

This is no different. You’re asking real bidders to pay against ghosts, while the platform still profits from the forfeited deposit of the bidder who never paid. It’s a double win for Dynadot and a breach of trust for everyone else. Even the appearance of that conflict of interest is poison to an auction business.

If I said I was angry, it would be an understatement. Livid would be closer to the truth.

I was actually on a yacht that I chartered to be with some of the most influential domain investors in the industry when I heard the news and they heard and saw my reaction firsthand. Ask them. I hit the ceiling!!

Worse: this policy protects no one but the fakers, the fake bids and all the abuse that goes with them. That will be devastating.

Our industry isn’t huge, Todd. It’s small, tight, and built on reputation. The moment people realize this policy exists, they’ll lose confidence not just in this one auction, but in your entire system just like I did when I first learned of it. It’s a dealbreaker. It’s a trust breaker. It’s an ethics breaker. And it’s the kind of thing that can break a company.

I’ve written a detailed public post explaining the situation not to attack you or Dynadot, but to explain how devastating this policy could be for Dynadot and for everyone who depends on you. I’d prefer not to share it. But if this can’t be resolved, I’ll have no choice but to make the issue public so that others can protect themselves.

I’d rather see Dynadot do the right thing: revert this sale to the last legitimate bid, acknowledge the problem, and fix the policy going forward. You’ll earn more trust in one day than any marketing campaign could buy.

Without those steps, tell me how is it possible to ever trust your platform again? How could I ever use Dynadot again? How could I ever recommend Dynafot again without explaining the unsavory policy that comes with it?

Doing the right thing helps everyone. Your customers, your brand, and your future. Doing the wrong thing helps no one, not even in the short term, and the consequences are unknown.

Thank you for your time, Todd. I truly hope you understand how serious and important this is.

Best,
Rick Schwartz

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dotcomma said:

He made his account public again to start posting this:

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Rick Schwartz is not pleased with how Dynadot handles non paying auction winners​

MapleDots said:

Yes it appears his account is now fully open to the public, he means business about this.

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