Ethereum NFT Platform Shuts Down After Blacklove Sale Falls Through

An Ethereum-based non-fungible token (NFT) marketplace called Foundation is shutting down after an important sale fell through the cracks. The Foundation's founder and CEO, Kayvon Tehranian, posted on X and announced that the marketplace's closure was following a failed acquisition by the digital art distribution platform called Blackdove. Tehranian confirmed that after the sale discussions ended, the Foundation is no longer in a position to function and stay operational. In a message signed by the Blackdove team, the Foundation later said that the site would briefly return, so users could delist NFTs. 

Foundation Will Let Users Withdraw Assets Before Platform Shuts Down 

Launched in early 2021, Foundation grabbed a lot of attention as it was a massive year for tokenised digital art, when an NFT piece called “Everydays: The First 5000 Days,” raised over $69 million (roughly Rs. 639 crore) on Christie's auction house, as per a report by Cointelegraph. As per Blackdove, the platform facilitated more than $230 million (roughly Rs. 2,131 crore) in primary sales for artists around the world, hosting NFT sales for artists like Jen Stark, James Jean, and Reuben Wu. 

In an X post, Tehranian explained what the next steps should be for users who have had their NFTs listed and said, “If you currently have an NFT listed on Foundation's marketplace, your NFT is held in our marketplace smart contract. While the contract is non-custodial, our frontend was the primary interface for interacting with it. We're working on providing an easy way for you to unlist and retrieve any NFTs currently held in the contract, and will share details soon.” 

He also expressed his disappointment and further added that “I acknowledge this is a disappointing outcome, but I continue to believe this community is resilient and better days are ahead.” 

Another NFT-linked infrastructure network built on Ethereum, Mint Blockchain, also announced that it had ceased operations and instructed users to withdraw assets. This year also saw two other NFT platforms, including Nifty Gateway, backed by Gemini exchange and the social NFT platform called Rodeo, announcing that they will also be shutting down their operations.

Despite these marketplaces shutting down, last year in February, NFT tokens recorded strong growth, with trading volumes reaching $578 million (roughly Rs. 5,355 crore) and sales totalling $5.5 billion (approx. Rs. 50,963 crore), showing that the users still believe in NFT tokens but just not enough for marketplaces to last.