The decision came after a sale deal with Blackdove fell through.
Foundation, one of the notable Ethereum-based NFT trading platforms, is ceasing operations. This was announced by Foundation founder and CEO Kayvon Tehranian.
“Our goal in selling was always for Foundation to continue to exist… That is no longer possible,” he wrote.
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The platform launched in early 2021. During its operation, it processed over $230 million in primary NFT sales. It became an auction venue for renowned digital artists, including Jen Stark, James Jean, and Edward Snowden.
The Deal That Went Wrong
In January 2026, Foundation announced it would transition to Blackdove’s management. However, the buyer later backed out of the deal. Blackdove explained its decision by noting that full due diligence was only completed after operational control had transferred.
“During this process, it became clear that building our own marketplace platform is the path that makes the most sense for the company.”
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Foundation reported that its platform infrastructure has already been shut down. Returning online in the near future is impossible. Users are advised to delist their NFTs and transfer their assets as soon as possible.
NFT Sector in Decline
Foundation’s closure is another example of the ongoing downturn in the NFT sector. Since the peak of 2021-2022, monthly trading volumes have fallen by more than 90%.
Earlier in 2026, Nifty Gateway (owned by Gemini), Rodeo, MakersPlace, and X2Y2 also ceased operations. Many platforms have either shut down completely, significantly reduced activity, or pivoted to other directions.
According to DefiLlama, OpenSea still dominates the market, controlling more than 73% of all NFT transactions. The total NFT market capitalization has returned to levels seen before the 2021 boom.
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