In this article, you will learn what is Foundation NFT. A lot of NFT marketplaces are everywhere with their own users including both buyers and sellers. Among them, Foundation is an NFT marketplace with unique features and notable NFT auctions.
What Is Foundation?
Foundation is an invite-only NFT marketplace for creators and collectors. Launched in February 2021, Foundation is one of the largest NFT marketplaces on the web. So far, Foundation has earned 39,000 ETH ($160 million) for its creators. The platform was host to notable NFT auctions such as Edward Snowden's first NFT and the Nyan Cat animation.
It's a platform that aims to build a new creative economy where creators can use the Ethereum blockchain to value their work in entirely new ways and build stronger connections with their supporters.
What is Foundation NFT?
Foundation NFT is a digital art NFT offered by Foundation only exclusive to their invited members. Foundation currently has over 100,000 NFTs for sale. All NFTs are sold using ETH and users must possess ETH in their wallets to bid on an auction. There are currently three types of NFTs offered on the Foundation platform: images, videos, and 3D artwork.
There are two types of NFT markets: primary and secondary. Primary markets are markets for NFTs that are being sold for the first time. Secondary markets are for NFTs that were already sold and are being re-sold. Collectors can bid on secondary market NFTs the same as primary market NFTs. Foundation charges a 15% service fee for all sales on the marketplace.
NFT creators must get an invite code to mint NFTs. Invites can only be sent by members who have already sold at least 1 NFT on the platform. Collectors can bid on auctions without restrictions. Foundation users need a Web 3.0 wallet such as MetaMask to transact on the platform. Foundation was built for the Ethereum (ETH) blockchain and all NFTs are hosted on Ethereum.
How do NFT Auctions work on Foundation?
Creators can start minting NFTs on the platform when they receive an invitation from an established member with at least 1 sold NFT. Their personal profile is tied to their MetaMask wallet and they need ETH to cover the gas fees for minting NFTs.
Collectors also need to have ETH in their wallets for bidding. When they bid on an auction, the gas fee is placed in a smart contract escrow. If they get outbid in the auction, the fee is returned to their wallet.
Creators can list their NFTs in an auction with a base “reserve price.” This is the minimum bid price for each NFT. When someone places a bid for an NFT, an automatic 24-hour countdown begins. If the NFT is not sold within 24 hours, the auction closes.
If a collector places a bid within 15 minutes of an auction closing, the auction is extended by another 15 minutes. Collectors can indefinitely extend the time limit as long as the bids are placed within 15-minute intervals after the last bid.
Collectors who win auctions have their NFTs transferred to their wallets automatically. The NFTs also appear under the collector's profile. The collector can then display their NFTs in their Foundation virtual gallery and share them on social media. They can also resell them on marketpl aces parties .
Bottom Line
On the Foundation marketplace, NFTs like Edward Snowden's first NFT and the Nyan Cat animation were sold standing as one of the largest NFT marketplaces in the space. If you are interested in Foundation, you can learn what is Foundation NFT in this article.
