Does a domain name need a token attached to the service in order to operate?
I would say it is still a scam as it is airdropping ENS tokens that were minted out of thin air and insiders pump and dumping the token to make a profit.
You can't do that illegal stuff with traditional domain names.
Ethereum is essentially a database, so certainly centralized databases can do similar things. The point is to do them with decentralization, openness, censorship resistance, and an economic model where users pay the expenses as they go. You may or may not think those things are valuable, but some people do; Ethereum and similar projects fill that niche.
IMO the token might be an illegal security indeed; and if that's the case I hope the SEC crushes them. But in the meantime I'll be using ENS names happily as a user and watch the events with popcorn.
> but I don't see how crypto domain names are any different or changes anything.
It will prevent that a big corp with the court on their side redirect your domain-bought-in-a-complete-legit way to them.
No, it will absolutely not. It does not matter what method of accounting or voting you use, you will be made to comply with a court order. If you don't comply, you're going to prison.
there are other financials using that technology
