Foundation NFT marketplace to shut down after Blackdove deal fails

Foundation, an Ethereum-based non-fungible token marketplace, will shut down after a planned acquisition by digital art distributor Blackdove collapsed, founder Kayvon Tehranian wrote on X Wednesday. He said the sale was intended to preserve the marketplace under new ownership but wrote, “That’s no longer possible,” and that Foundation is not in a position to bring the marketplace back online.

The company later posted a message signed by the Blackdove team saying the site would come back online briefly to allow users to delist NFTs and withdraw assets. Tehranian did not name Blackdove in his initial announcement.

Launched in early 2021, Foundation hosted primary sales for artists including Jen Stark, James Jean and Reuben Wu. The platform handled high-profile drops such as Edward Snowden’s NFT piece ‘Stay Free’, which sold for about 2,200 ETH in 2021, roughly $5 million at the time. Blackdove has said Foundation facilitated more than $230 million in primary sales.

Blackdove first announced plans to buy Foundation in early 2025 and the platforms discussed a transfer of ownership in 2026. That transition did not complete, leaving Foundation without a buyer and without the cash flow Tehranian said was needed to sustain operations.

The global NFT market cap has dropped since the 2021 peak, with lower liquidity and reduced transaction volumes. Several marketplaces and platforms have closed or wound down in recent months and years, including Mint Blockchain, Nifty Gateway, Rodeo and MakersPlace. Some exchanges have also shut their NFT services. At the time of publication, one major marketplace accounted for more than 73% of sector activity, with other competitors holding smaller shares. NFT market capitalization had fallen back toward levels seen before 2021 by February 2026.

Tehranian did not provide a final shutdown date beyond the temporary reopening for delisting. Users and creators with listings on Foundation were advised to check the site during the delisting window and withdraw any remaining assets.