CEO Kayvon Tehranian confirmed the closure, and statements linked the failed acquisition to Blackdove. Foundation processed more than $230 million in primary sales and hosted major artists, as well as Edward Snowden’s “Stay Free” NFT, which sold for about $5 million in 2021.
Foundation Officially Shuts Down
Foundation, once one of the most well known Ethereum-based NFT from the 2021 NFT boom, is shutting down after a planned sale that was supposed to keep the platform alive collapsed.
Founder and CEO Kayvon Tehranian announced the closure on X, and explained that the company hoped a new owner would continue operating the marketplace, but that outcome was no longer possible. Although he did not explicitly name the buyer, later statements connected the failed acquisition to digital art distribution platform Blackdove.
X post from Kayvon Tehranian
Foundation also indicated the site would briefly return so users could remove or delist their NFTs before the final shutdown. The closure is now part of the broader decline of the NFT sector since its peak years.
Foundation launched in early 2021 at a time when tokenized digital art was attracting a lot of attention. During that period, some NFTs sold for millions of dollars. Foundation became a major destination for digital creators and collectors by facilitating over $230 million in primary sales according to Blackdove.
Artists like Jen Stark, James Jean, and Reuben Wu used the platform to sell their work, which helped Foundation build a reputation as a premium marketplace for curated digital art.
The platform also turned heads for its politically and culturally significant sales. One of its biggest moments came when Edward Snowden released his NFT artwork “Stay Free” through Foundation. The piece sold for approximately 2,200 Ether, worth around $5 million at the time.
However, the quick rise of NFTs was followed by an equally dramatic slowdown. As enthusiasm faded and crypto markets cooled, NFT trading volumes dropped sharply. Lower liquidity, fewer buyers, and reduced transaction activity made it very difficult for independent marketplaces like Foundation to stay profitable. Many users migrated toward larger platforms with stronger network effects and deeper liquidity.
Top NFT marketplaces by volume (Source: DefiLlama)
Despite the downturn, OpenSea is still the dominant player in the market. Currently, it controls more than 73% of sector activity, with competition mainly coming from Blur.