Foundation, one of the more prominent Ethereum-based NFT marketplaces from the 2021 boom, is shutting down after a planned sale meant to sustain operations fell through.
Founder and CEO Kayvon Tehranian announced on X on Wednesday that the platform would close following a failed acquisition by digital art distribution firm Blackdove.
While he did not explicitly name Blackdove, Tehranian said the deal had been intended to keep the platform running under new ownership. “That’s no longer possible,” he said, adding that Foundation is not in a position to relaunch the marketplace.
In a follow-up message signed by the Blackdove team, Foundation said the site would briefly come back online to allow users to delist their NFTs.
The shutdown highlights the continued decline in NFT trading activity since the 2021 boom, as shrinking liquidity leaves fewer independent marketplaces able to survive.
Foundation rose during the 2021 NFT boom
Launched in early 2021, Foundation quickly gained traction during a breakout year for tokenized digital art, when some NFTs sold for as much as $69 million.
According to Blackdove, the platform facilitated over $230 million in primary sales for artists worldwide, featuring creators such as Jen Stark, James Jean, and Reuben Wu.
Foundation also hosted digital artwork by U.S. whistleblower Edward Snowden. His NFT piece “Stay Free” sold for around 2,200 Ether (ETH) in 2021—valued at roughly $5 million at the time.
As broader NFT activity cooled after peaking in 2022, platforms like Foundation struggled with declining liquidity and fewer sustainable transaction flows. Blackdove had initially announced plans to acquire the marketplace in early 2025, with a transition of ownership expected the following year.
NFT market consolidation deepens
Foundation’s shutdown adds to a growing list of NFT platforms that have either closed or pivoted away from digital art trading, as the sector’s market cap has fallen back to pre-hype levels last seen in 2021 by February 2026.
Mint Blockchain, an NFT-focused infrastructure network built on Ethereum, also said Friday that it has ceased operations and urged users to withdraw their assets.
At least two other platforms have announced shutdowns this year, including Gemini-backed Nifty Gateway and the social NFT platform Rodeo, reflecting a broader consolidation across the NFT market.
MakersPlace shut down last year amid declining NFT activity, while X2Y2 wound down operations and pivoted away from the sector. Crypto exchange Bybit has also closed its NFT marketplace as trading volumes dropped.
OpenSea has remained the dominant marketplace despite the downturn, accounting for more than 73% of sector activity at the time of writing, facing competition from rivals such as Blur, according to DefiLlama.
Despite the sharp contraction in the NFT market, some industry figures—including Animoca Brands chairman Yat Siu—believe the sector could eventually recover and reach new all-time highs.
