It’s hardly surprising that you’re interested in participating in the metaverse’s expanding universe of digital art and property. Particularly if you’re an artist or you’re interested in rare items and arts, Foundation is a good platform and ought to be one of your points of entry into the market.
It shouldn’t be your only access point to everything the metaverse has to offer, though. The platform is new and still has a lot of formidable obstacles to conquer. Many collectors will certainly become discouraged by high secondary market fees. Additionally, the platform’s collector base is smaller than its artist base, which will leave some artists without a captive audience.
But whether you’re a collector or an artist, Foundation is a reliable secondary or tertiary source for information about the NFT market.
What Is Foundation
Foundation is a decentralized NFT marketplace that facilitates the creation and selling of NFTs. The platform promises to create a new creative economy where creators can utilize the Ethereum blockchain to value their work in whole new ways and forge closer bonds with their supporters.
Over 100,000 NFTs are currently available for purchase, and Foundation currently has 260,000 registered members. Users must have ETH in their wallets in order to participate in an auction and purchase any NFTs, which are all sold using ETH. Currently, the Foundation platform offers three different types of NFTs: pictures, movies, and 3D artwork.
Overview Of Foundation
The NFT marketplace for makers and collectors is invite-only. Foundation was introduced in February 2021. For its developers, Foundation has so far generated 39,000 ETH ($160 million). The Nyan Cat animation and Edward Snowden’s first NFT were only a couple of the memorable NFT auctions held on the platform.
An invite code is necessary for NFT creators to mint NFTs. Only users who have sold at least 1 NFT on the platform can send invitations. Without limitations, collectors are allowed to bid at auctions. To conduct transactions on the Foundation platform, users must have a Web 3.0 wallet, such as MetaMask. All NFTs are hosted on Ethereum, which was created for the Ethereum (ETH) blockchain.
Features Of Foundation
By granting access to a wide range of alluring features, the Foundation NFT marketplace has drawn a sizable following. Some of the features that set it apart are explained below.
Artists earn 10% royalties
Rarely do traditional artists who create paintings, sketches, and sculptures receive a royalty when their creations are sold on the secondary market. NFTs are helping this trend start to shift.
With foundation, you can easily receive royalties when your digital works are sold on the secondary market. Typically, you have to decide on the royalties rate. Every time your work is sold on the secondary market, a 10 percent royalty is immediately added to your earnings.
Supports crypto wallets
You must safely keep your NFTs in a cryptocurrency wallet after purchasing them. Both WalletConnect and MetaMask wallets are supported by the Foundation App. Even though these are the most popular wallets on the market, there aren’t as many options as there are on other NFT marketplaces.
Contains an array of exclusive digital arts
Although Foundation doesn’t have collections of 10,000 computer-generated NFTs, you will likely to find something there that moves you, inspires you, or makes you think or feel something. More than 25,000 NFT creators have contributed their works to the platform thanks to Foundation’s focus on originality and really creative NFTs, and this number is only expected to grow.
Built on the Ethereum blockchain
The Foundation NFT platform built on the Ethereum blockchain offers a decentralized ecosystem with some advantages. Ethereum is the most stable blockchain technology and you can count on having a good experience when you utilize the Foundation marketplace.
Different payment options
On the Foundation NFT Marketplace, payments can be made with a credit card, debit card, or Ethereum (ETH). This is a big deal compared to other marketplaces.
Runs the auction-style sales
NFT auctions function similarly to other online sales. They often endure over a few days, with the bulk of the action taking place in the last minutes. Keep track of when the auction expires and refrain from placing many bids up until the time is almost up. You run the risk of artificially inflating prices if you bid too soon.
Like the eBay of NFTs, Foundation operates as an NFT auction house. In an auction, you can participate in one of two ways:
Open auction
Simply submit your bid if you see an artwork you like in an open auction. Then, until the auction is over, keep bidding to maintain an advantage over the competition.
Reserve price bid
A reserve price exists for each NFT. Once a collector places a bid of at least this amount, the auction can begin. If you come upon a piece of digital art you’d like to acquire but the auction isn’t going, place a bid for the reserve price. The auction will start as a result. Then, use the bidding feature to keep one step ahead of your rivals.
Fees
The seller is responsible for paying the platform’s transaction costs, which total 5% of the sale price. That is twice what is paid for transactions on more well-known marketplaces like OpenSea and Rarible.
The Foundation’s fees on primary sales, the first sale made by an NFT, are what keep it afloat, nevertheless. The majority of marketplaces charge up to 15% more in commission on primary sales than they do on secondary purchases.
On the Foundation platform, transaction fees for initial sales are only 5%, letting you keep more of the money generated by the sale of your artwork.
When engaging in NFT transactions, keep in mind that you will also need to pay gas fees. No NFT exchange, including Foundation, sets or collects these gas surcharges. The blockchain that houses the data at the core of your digital collection, however, sets and collects these fees. In Foundation’s instance, that is the occasionally pricey Ethereum blockchain.
Pros And Cons Of Foundation NFT Marketplace
Pros
- Guaranteed royalties: Every time one of your works is sold using Foundation to mint and sell it, you will receive a 10% royalty. This opens up a fresh source of residual revenue for artists.
- Contains unique digital arts: The advantages of the artists described above are advantageous to you as a collector as well. You can find jaw-dropping pieces of art on the platform because such benefits have drawn numerous top artists to it.
- Auctions: The Foundation sells its NFTs through an auction process. You can get a nice deal on occasion with a well-timed bid.
- Low primary sales fee: With Foundation, you’ll keep more of your earnings than with most other platforms because you only pay 5% of the sale price on the first sale of your digital artwork.
Cons
- It’s built on the Ethereum network which is quite expensive: Due to the fact that the marketplace is built on Ethereum, using it will need you to pay Ethereum gas costs. Sometimes, Ethereum fees can be very costly, even reaching hundreds of dollars.
- Limited crypto support: Payments on Foundation can only be made with a credit card, debit card, or Ethereum. The majority of NFT marketplaces provide a lot more payment possibilities involving cryptocurrencies.
- High secondary market fees: Whether they take place on the primary market or the secondary market, transaction costs are set at 5%. Leading NFT markets like Rarible and OpenSea only charge 2.5 percent transaction costs. Even Foundation’s closest rival, SuperRare, only charges 3 percent.
- Small collector base: Only roughly 20,000 collectors use the platform, even though there are about 25,000 artists there. Even if each collector only acquired one piece of artwork, 5,000 artists would still not be able to support themselves financially.
FAQs
What kind of NFTs can you sell on Foundation?
Digital art NFTs are available from Foundation. You can purchase pictures, films, and 3D artwork.
Is foundation marketplace safe?
Living off the Ethereum blockchain, the Foundation marketplace is decentralized. The blockchain that is being developed the most actively and securely right now is Ethereum.
Your acceptance of a smart contract’s terms occurs when you make a purchase on the Foundation platform. You’ll instantly receive the artwork and make the payment you agreed to make after that contract is finalized. It is one of the more secure methods of conducting online transactions because everything is done automatically on the Ethereum blockchain without the intervention of a central third party.
How much does foundation charge for NFTs?
The final selling price for NFTs on Foundation’s platform is not determined by Foundation. Buyers submit bids for NFTs, and the highest bidder receives the price. In certain instances, you might be able to pick up a high-quality NFT for around $50; in other instances, you might have to be prepared to shell out hundreds of dollars to win an auction.
Every transaction made through Foundation’s marketplace is subject to a 5% transaction fee, however, the vendor, not the buyer, is responsible for this cost. When buying NFTs, you’ll also need to account for petrol costs.
Final Words
NFT creation and sale are made easier by Foundation. In 24-hour auctions, users can mint and sell NFTs. The Foundation uses an invitation procedure to raise the quality of its NFTs. A registered creator who has sold at least 1 NFT on the platform and is inviting the other creator is required.
