I was recently trying to come up with a URL for a project I was working on. There are lots of domains and you have to get creative since anything with a .com is taken. One of the more attractive ones is .ly because words actually end with ly, so you can be creative when you create the name. There are more and more people and companies implementing this domain. One of the most well know is bit.ly, which is the dominant link shortening service on the web right now.
My concern was the risk of using .ly since the domain is for Libya. That just made me question the risks of using that. Could I lose control of it? Could it just be pulled without me being able to do anything about it or without notice? I wasn't sure so I did some searching and really found nothing. I talked to a friend or two about it and I found no issues other than they really didn't know much about it either.
Then I came across this story earlier in the week about vb.ly being shut down without notice. ReadWriteWeb has a great article on this that outlines the issues that are being seen with the .ly domain. If you are considering using .ly you should check out this article first. If you are looking at using .ly this gives you another set of information on the subject. If you would like to find out more information about .ly domains you can check out NIC.ly or Libyan Spider.