Foundation NFT Marketplace Shuts Down After Failed Acquisition by Blackdove

Gate News message, April 17 — Foundation, one of the most prominent Ethereum-based NFT marketplaces from the 2021 NFT boom, is shutting down after a planned acquisition collapsed. Founder and CEO Kayvon Tehranian announced the closure on X, stating that the company had hoped a new owner would continue operating the platform, but that outcome is no longer possible. The failed buyer has been identified as digital art distribution platform Blackdove.

During its peak, Foundation became a major destination for digital creators and collectors, processing over $230 million in primary sales. The platform hosted prominent artists including Jen Stark, James Jean, and Reuben Wu. One of its most notable moments came when Edward Snowden released his NFT artwork “Stay Free” through Foundation, selling for approximately 2,200 Ether, worth around $5 million at the time.

The closure reflects the broader decline of the NFT sector since 2021. After the initial boom, NFT trading volumes dropped sharply as enthusiasm faded and crypto markets cooled. Lower liquidity, fewer buyers, and reduced transaction activity made it increasingly difficult for independent marketplaces like Foundation to remain profitable. Many users migrated to larger platforms with stronger network effects. Foundation indicated the site would briefly reopen to allow users to remove or delist their NFTs before final shutdown.

OpenSea remains the dominant player in the NFT market, currently controlling more than 73% of sector activity, with Blur as the main competitor.