The prominent Ethereum-based NFT marketplace Foundation has permanently ceased operations after Blackdove, a digital art display company, reversed its decision to acquire the platform. Blackdove executive Marc Billings confirmed the halt in support, stating the company completed full due diligence after the operational handover and decided to build its own proprietary marketplace instead of integrating Foundation's technology.
Management control has been returned to Foundation founder Kayvon Tehranian to oversee an orderly transition. Billings emphasized that the decision "has no correlation to the demand for digital art," noting that Blackdove's physical digital art installation business grew 40% year-over-year. The acquisition, initially agreed upon to expand Blackdove's digital art services, was reassessed post-handover, leading to a strategic shift.
The shutdown occurs against a backdrop of a severe contraction in the broader NFT market. Data indicates about 96% of NFT collections now have zero trading activity, with overall market capitalization falling 72% during 2025. Trading volumes have plummeted from a peak of $2.9 billion in 2021 to just $23.8 million in early 2025.
Foundation, which facilitated over $230 million in historical sales volume and hosted iconic auctions for figures like Edward Snowden, is now dismantling its technical infrastructure. The company has urged users to withdraw their assets from its smart contracts and will maintain support for IPFS (InterPlanetary File System) metadata pinning for only one additional year, raising concerns about long-term art preservation in a decentralized ecosystem.
This closure adds to a growing list of casualties in the digital art NFT sector, including platforms like MakersPlace, KnownOrigin, and Nifty Gateway, signaling a forced industry consolidation due to collapsing liquidity and a shift in investor interest toward fungible tokens and memecoins.
