Popular NFT marketplace shuts down after failed sale deal

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Eugene Komchuk

17.04.2026

Popular NFT marketplace shuts down after failed sale deal — Foundation announced its closure

Foundation, one of the most well-known Ethereum-based NFT marketplaces from the 2021 boom era, is shutting down. The platform’s management made the decision after a deal that was supposed to keep it operational fell through.

Foundation founder and CEO Kayvon Tehranian announced on X on Wednesday that the marketplace would cease operations. The reason was the collapse of a deal to sell the platform, which was expected to allow it to continue operating under new ownership.

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Although Tehranian did not directly name the buyer, the deal had previously been linked to the digital art platform Blackdove. According to him, the main goal of the transaction was to ensure Foundation’s continued operation, but that is no longer possible. He also noted that the company lacks the resources to relaunch the marketplace on its own.

Foundation later said the website would briefly go back online so users could delist their NFTs. The statement was published on behalf of the Blackdove team.

The rise and decline of Foundation

Foundation was launched in early 2021 and quickly became a prominent part of the NFT boom, when tokenized digital artworks were selling for tens of millions of dollars. At the time, some NFTs were sold for as much as $69 million.

According to Blackdove, artists around the world generated more than $230 million in primary sales through Foundation. The platform hosted works by artists such as Jen Stark, James Jean, and Reuben Wu.

The marketplace also featured digital art linked to former US intelligence contractor Edward Snowden. His NFT piece Stay Free sold for around 2,200 ETH in 2021, worth roughly $5 million at the time.

What happened to the NFT market

The NFT market began to decline after its explosive growth in 2021, when demand was largely driven by hype rather than intrinsic value. Many buyers entered the market expecting quick flips, creating a speculative bubble. As interest faded, liquidity dropped sharply: it became harder to find buyers, prices fell, and most collections lost value. At the same time, new users stopped entering the market at previous levels, while existing participants grew disillusioned with returns.

Additional pressure came from broader market factors, including tighter monetary policy, a downturn in the crypto market, and reduced risk appetite. The NFT ecosystem also proved unprepared for long-term sustainability — many projects lacked real utility, and platforms relied on a constant flow of transactions. As a result, the market has shrunk into a more niche segment dominated by major players and projects with real use cases.

It is worth noting that by the end of 2025, the NFT market had already collapsed despite growth in crypto trading activity.

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