NFT Platform Foundation Closes After Rescue Deal Fails
Foundation, a prominent Ethereum-based (CRYPTO: $ETH) platform for non-fungible tokens (NFTs) has shutdown after a planned rescue acquisition by Blackdove failed.
According to a social media post, Foundation will not return to active service because the deal intended to sustain its future collapsed.
Foundation had hoped an acquisition by Blackdove, a specialized digital art platform and technology company, would allow it to keep running under new management.
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A separate message from Blackdove said the Foundation marketplace would remain online for a brief window to allow users to delist their NFTs and secure their assets before a final shutdown.
The failure of Foundation highlights a difficult period for the NFT sector, which has seen a steady exit of independent marketplaces as trading volumes crash.
Often referred to as digital art, NFTs are items ranging from paintings to baseball cards that have a digital identifier recorded on a blockchain that certifies ownership and authenticity.
Foundation first gained global attention during the 2021 NFT boom, eventually facilitating over $230 million U.S. in sales for the crypto items.
Now, Foundation is the latest NFT marketplace to close for good. Nifty Gateway, which had the backing of the Gemini (NASDAQ: $GEMI) crypto exchange, shutdown in February of this year.
The total market capitalization for NFTs has fallen to levels not seen since early 2021.
Both Foundation and Blackdove are privately held concerns and their stocks do not trade on a public exchange.
