Why are registrars allowed to prospect for domains?

I recently saw that mhg.org was available from godaddy for $8800. Does anyone else see the conflict of interest here? The organizations that control the domain registry are also domain prospecting. Do you think they might have a unique advantage over the masses? I do! Shouldn’t their position involve a trust that excludes them from owning domains (other than those needed for their core business)?

related terms:
domain kiting, domain tasting, domain prospecting

Registrars have a uniquely unfair advantage when domain prospecting.

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