It’s called “domain parking” and it’s done for different reasons.
Sometimes it’s people speculating that they can register the domain and sell it later for a profit. Perfectly legal unless you register a domain name that is somebody else’s trademark.
Sometimes it’s someone with future plans for the domain.
Sometimes the domain is actually being used, just not for any public-facing content. Examples would be managing a personal mail domain, or hosting a personal cloud storage system.
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