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It's called domain name front running. GoDaddy have repeatedly been accused of it, as have many other registrars...

https://en.wikipedia.org/wiki/Domain_name_front_running




I think this specific process is referred to as domain tasting. Front running is using insider information, such as whois logs, while tasting is actively registering domains and measuring how much traffic the domain gets.

https://en.wikipedia.org/wiki/Domain_tasting




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