Foundation Review

The NFT market has grown significantly since its 2017 introduction. As a result, there are dozens of NFT marketplaces from which creators and investors can choose!

But selecting the best possible platform for your wallet and digital assets can be challenging. One of the most recently created NFT platforms, Foundation is often considered an excellent option for both buyers and sellers. 

However, this app-based marketplace has unique features that differentiate it from competing platforms like OpenSea or Rarible. This guide will explore everything you need to know about the Foundation NFT marketplace, including how to buy and sell NFTs within this platform.

What Is Foundation?

Foundation is one of the newest and most massive non-fungible token (NFT) marketplace platforms and communities. Since its creation in February of 2021, Foundation has processed more than 170 million USD worth of transactions.

The mission goal of this app-based marketplace is “[building] a new creative economy” via a streamlined creator-to-investor interface. One of the unique features of Foundation is that it isn’t entirely open to all NFT creators and sellers. Instead, it operates on an invite-only system. 

While this approach can be frustrating for beginner-level creators new to the NFT community, it dramatically decreases the likelihood of scams on Foundation. As such, this marketplace is considered one of the safer options for both sellers and buyers.

One of the most notable things about this marketplace is its NFT meme presence and selection. Trending memes like Nyan Cat have sold for millions on the Foundation platform! This has helped make Foundation one of the highest-trending NFT marketplaces. 

How Does Foundation Work?

Foundation is an application that operates as an NFT marketplace, allowing creators and potential investors to list and browse hundreds of unique digital assets. It operates using Ethereum blockchain technology.

As with the bulk of other NFT marketplaces, this commerce relies on the Ethereum blockchain and produces tokens (or assets) exchangeable with Ethereum (Ether/ETH) tokens. 

To purchase NFTs via the Foundation marketplace, you’ll need to connect your crypto wallet to the Foundation app. But those hoping to sell NFTs via Foundation may have a more challenging experience. 

To sell digital assets within this app-based marketplace, you’ll need an invite from an established Foundation creator. But a person can become established as a creator or seller on Foundation by selling at least one NFT. 

After users reach this minimum goal, they can invite others to join Foundation as creators. As such, once someone is invited to Foundation, it typically doesn’t take long for them to gain access to the ‘Invite’ feature. 

What Currencies Can You Use on Foundation?

The Foundation NFT marketplace primarily deals in Ethereum tokens, also called Ether (ETH). As such, creators and investors that use other cryptocurrencies may want to convert those funds into ETH and transfer them to a Foundation-compatible digital wallet before purchasing NFTs on the marketplace.

Naturally, beginner-level investors and creators may not currently own and maintain a digital crypto wallet. In this instance, it’s best to open a wallet and acquire ETH, ignoring all other cryptocurrencies. 

But, of course, those looking to diversify their investments are more than welcome to purchase ETH alongside hundreds of other cryptocurrencies. However, it’s important to note that any non-ETH currency won’t be accepted for payment when operating on the Foundation platform.

What Types of NFTs Can You Buy on Foundation?

Foundation is very much a niche-based marketplace. Unlike many other NFT marketplace platforms, Foundation primarily only offers digital artworks and GIFs. 

As such, you won’t likely find domain names, cryptocurrencies, trading cards, or other common types of NFTs on the Foundation platform.

Instead, you can find collections of one-of-kind NFT art created by talented artists from all around the world. Consequently, Foundation is one of the most beloved NFT platforms for artists and art curators.

How Do You Buy an NFT on Foundation?

Are you looking to snag some priceless digital art on Foundation? If so, you’ll need a digital wallet that contains a decent amount of ETH.

Those new to Foundation can begin buying minutes, but only if they have a pre-existing MetaMask or WalletConnect. If you don’t, you’ll need to set one up. That’s because the Foundation NFT platform is only compatible with those types of crypto wallets.

This feature is bound to be restrictive for some, especially those using the widely-accepted Coinbase Wallet. However, setting up a MetaMask wallet only takes a few minutes and may be worth the effort, especially if you’re serious about collecting fine digital artwork.

Once you’ve connected your crypto wallet, you can view current bids on NFTs and place competing bids. It’s as simple as that!

Do You Need To Store Your NFTs? How Do You Do So?

One of the most frustrating things that an investor can experience is disappearing assets. That’s why it’s crucial to note whether your chosen NFT platform stores purchased NFTs.

In the case of the Foundation marketplace, a non-custodial platform, the answer is a resounding no. As such, Foundation users will need to maintain an NFT-friendly digital wallet. Otherwise, purchased NFTs will disappear from the blockchain. 

Fortunately, the primary Foundation-compatible cryptocurrency wallet is MetaMask. This virtual wallet is capable of storing NFTs, making it an excellent resource for investors. 

How Do You Sell an NFT on Foundation?

To sell an NFT on Foundation, you’ll need to receive an email invite from a current creator operating on the Foundation platform. Unfortunately, there is no other way to open a seller’s account on this marketplace.

That said, once you have secured an invite, getting started on Foundation is a simple process.

You’ll need to create an account, upload and mint your NFTs to ensure proper authentication, pay the related gas fees, and complete your listing. Unfortunately, users cannot set a fixed price for their digital assets. Instead, all listed NFTs are placed into an auction.

Naturally, investors are welcome to place bids throughout the duration of the auction. The highest bidder receives the NFT and the creator earns a 10% royalty as well as 85% of the asset’s price.

Selling Options on Foundation

As we’ve previously mentioned, the only way for NFT creators and sellers to list their assets on Foundation is to receive an invite from a current Foundation seller. 

But Foundation also limits many selling options. For example, creators cannot set the transaction fee or choose to pay any percentage of it. That fixed-rated fee falls to the buyer.

Additionally, Foundation offers creators a 10% flat-and-fixed royalty rate. While this isn’t necessarily bad by any means, it doesn’t allow much customization on the part of the user.

Foundation Fees

The Foundation NFT marketplace isn’t the best option for those looking to avoid high transaction fees. 

While platforms like OpenSea might offer a competitively low 2.5% transaction fee, Foundation charges 15%. This means that buyers naturally pay a 15% price increase to cover the cost of Ethereum blockchain data transfers (aka the transaction). 

Additionally, creators will need to pay gas fees on any NFTs uploaded to the Foundation marketplace. These fees can range from a reasonable $50 to well over $200. Factors that influence gas prices include NFT data size and current gas fee rates.

Is Foundation Safe To Use?

Thanks to Foundation’s unique invite-only creator system and the limited on-platform wallet compatibility, this marketplace is one of the safest options for both sellers and investors. 

Of course, this added safety comes at the cost of NFT diversity. Still, this might be an acceptable tradeoff for some investors.

Pros and Cons of Foundation

Let’s take a brief moment to compare the positive and negative aspects of the Foundation NFT marketplace. By contrasting both elements, you can get a better overall understanding of the platform and make an educated decision about its suitability.

Pros

• The invite-only creators’ systems help make this platform more secure against scammers
• This NFT marketplace lists highly diverse and desirable digital artwork
• Utilises MetaMask, one of the most common and easily-accessible crypto wallets
• Works on the Ethereum blockchain, increasing its general compatibility with most wallets and tokens

Cons

• The only way to sell NFTs on Foundation is to receive an invite from an established Foundation creator
• Sellers have less autonomy when it comes to fees and royalty rates
• Features one of the highest transaction fees of any NFT marketplace

Frequently Asked Questions

Do you have a couple of remaining questions about the Foundation NFT marketplace? If so, you may find the answers you’re looking for just below!

How Much Does It Cost To Mint an NFT on Foundation?

The cost to mint an NFT via Foundation varies depending on the precise day and time. That’s because minting an NFT incurs gas fees, which are costs associated with data transfers within the Ethereum blockchain.

Gas fees are in a constant state of change, which is why creators should strategically check updates on gas fees. 

Doing so can help NFT sellers mint NFTs for lower costs, saving money over the long-term. That said, the average price to mint an NFT on Foundation is anywhere between $50 and $200.

How Do You Get Invited to NFT Foundation?

Those looking to sell or create NFTs won’t be able to naturally sign-up and list assets on the Foundation NFT marketplace. That’s because Foundation operates via an invite-only system. 

Enlisting the help of current NFT artists on Foundation is the only means of joining.

You can increase your chances of getting an invite by posting regularly on NFT creator forums, reaching out to the NFT creator community, or participating in community-run discussions regarding the Foundation marketplace. 

You could also advertise your new NFT project on your social media. Opening a social media account to flaunt your NFT creation skills is an excellent way to increase your chances of receiving a Foundation invite. But it could also help you market your NFTs.