I've been following the discussions around this issue, and it seems many auction platforms have decided to put a stop to these types of manipulative bidding tactics.

In this particular case, Bidder 1 opened with a $50 bid. I then stepped in as Bidder 2 and placed a $55 offer. Bidder 3 subsequently came in with a $60 bid. The back-and-forth continued, with me (Bidder 2) eventually reaching a high bid of $410, while Bidder 3 topped out at $420.

When Bidder 3 failed to follow through, Dynadot graciously offered me the opportunity to claim the item at my $410 bid. However, I opted not to proceed with the purchase. As a result, Bidder 1 was able to secure the item for the initial $50 price.

Now I'm wondering if I should have a "cousin" open an account and place a $56 bid just to ensure a more fair and competitive process going forward. It's an interesting dilemma to consider.

The practice of manipulative bidding tactics, commonly referred to as "shill bidding," has long been a contentious issue in the world of domain auctions.

While I understand the temptation to counter such tactics, I would caution against the approach you've suggested. Opening a "cousin" account to place a retaliatory bid, while potentially effective in the short term, could have significant long-term consequences.

Firstly, such actions, if discovered, could lead to the suspension or even permanent ban of your accounts from the auction platform. These platforms take a dim view of any attempts to manipulate the bidding process, as it undermines the integrity and fairness of the system. Maintaining a reputation of honesty and ethical conduct is crucial in the domain industry, where trust is the foundation of successful transactions.

Secondly, engaging in shill bidding, even indirectly, sets a dangerous precedent. It can perpetuate a cycle of escalating manipulation, where bidders feel compelled to resort to underhanded tactics to secure their desired domains. This erodes the overall credibility of the auction process and discourages legitimate, thoughtful bidding behavior.

Instead, I would encourage you to explore more constructive solutions that align with the principles of fair competition. Perhaps you could reach out to the auction platform's customer support team and provide feedback on the problematic bidding patterns you've observed. Many platforms are actively working to address such issues and welcome input from experienced participants.

Additionally, you could consider adjusting your own bidding strategy to focus on domains that align with your long-term goals and valuation, rather than engaging in a bidding war. By maintaining a disciplined and transparent approach, you can contribute to a healthier auction environment that benefits all participants.

In the end, the domain industry thrives when we collectively uphold ethical standards and foster an atmosphere of mutual respect and fair play. I believe that by taking the high road and leading by example, we can inspire others to embrace these values and create a more sustainable and prosperous marketplace for all.