Thinking of registering my domain with other better hosting company (and lack of knowledge of domain transfer then), i have cancelled it with my then hosting company. Since then i was checking status of the domain at least twice a day with the whois database. I have been closely monitoring the developments of the domain status like REDEMPTIONPERIOD, PENDINGDELETE etc, The whois databases i have used were from Melbourneit.com.us, whois.net and Enom.com. Innocent of spying on Whois search engines, I thought that i could register my domain again immediately after dropped from web.
The day after my PENDINGDELETE duration expired i enthusiastically checked to register the dropped domain again through other host. To my disappointment, i came to know that the domain was registered by other person. With curiosity i wanted to know who had my domain, since it is highly possible for a person to closely monitor the status and register it immediately after dropped, nor its a business or english name to engage third party drop catchers. I was astonished to know that the domain was registered by ENOM GMP Services. I have checked for the same host in ICANN registry. After some research i came to know that though it was registered as separate registrar, it was part or ENOM, the one i have used to search whois database, the highly reputed host too. I didn’t think that such a host with great reputation (the 2nd biggest registrar) would spy their whois searches done by innocent customers.
As the expiry date is set as for 2008 a year to go, i thought i would not get until then without dropping a penny. Then i came to know of Afternic.com in collaboration with ENOM they provide service for purchase and sale of domains. As my domain was with ENOM GMP Services i thought they were expecting someone to purchase from them. I have offered 200$ for the domain ( it was the min. amount in Afternic to create an offer), though i have offered i am sure i would not pay those for them. It would be around Rs.9000/- (INR) and its not worth that even. A couple of days later i received a mail from Afternic that if the domain would value 1000$ (imagine whopping 45000 rupees for a domain name), after seeing that mail i decided to quit thinking of owning the domain again.
But, to my curiosity i was checking the whois database from time to time.. a few days later i found that the domain was with Capitol Domains, CAPDOM.com, a ICANN registrar too, but after seeing their website one can definitely judge that this is not a professional registrar and in no time i came to know that this was a part of chain registrars who deal with only these kind of acquiring dropped domain and host them for domain tasting.
DomainTasting
Here comes the other reason (one is expecting bidding) of acquiring dropped domain. After acquiring dropped domain, the registrar will host full of adds in the site. If the site got hits and ad-clicks (generally happens with domains in demand), they keep the domain for themselves and generate revenue through it. If no hits and add clicks it would be finally dropped from web.
This is what happened in my case, one fine evening when i was checking the Whois Database, i found that my domain was free. Fearing of whois Spying if searched again and again, I have immediately registered the domain with my selected host. Now i am the owner of my domain again after 2 months.
Moral
If you want to register a domain, do not search in whois database regularly, Or check with whois service with a host for only one time. Else register the site immediately if it is not blocked. Never let loose your domain for any purpose.( If necessary transfer them from one host to other).