Foundation, a prominent Ethereum-based NFT marketplace, is shutting down after a failed acquisition by Blackdove, a digital art platform. Founder Kayvon Tehranian announced the closure on X, stating that the initial goal of the sale was to ensure the marketplace’s continuity, but that is no longer feasible. Users will have a brief opportunity to delist their NFTs before the site goes offline permanently.
This development highlights the ongoing struggles within the NFT sector, which has seen a significant decline in trading activity since its peak in 2021. Foundation, which facilitated over $230 million in sales during its height, is now part of a troubling trend affecting multiple NFT platforms as liquidity dries up and transaction volumes decrease. The market cap of NFTs has plummeted to levels not seen since before the 2021 boom, with other platforms like Nifty Gateway and Mint Blockchain also ceasing operations this year.
The closure of Foundation underscores the need for market professionals to reassess their strategies in the NFT space, as consolidation continues and dominant players like OpenSea maintain a significant market share amidst the downturn.
Source: cointelegraph.com