Blockchain technology has been a trending topic of discussion for years now, and non-fungible tokens (NFTs) are the latest wave in the trend. Some of these digital artworks have climbed to unbelievable prices. So, it’s no surprise that you might want to dig into the industry and see if you can strike digital gold.
To do so, you’ll need an NFT marketplace like Foundation.app. The company was founded in 2020, making it a relatively new exchange, but it has quickly grown its audience to about 25,000 creators and 20,000 collectors.
Is the Foundation NFT marketplace the best for you to use, or should you look to a more established platform like OpenSea, Rarible, or SuperRare? Read on to find out.
Key Features of Foundation NFT Marketplace
The Foundation NFT marketplace has attracted a meaningful audience by providing access to a wide range of compelling features. Some of the most important features for you to consider include:
Exclusive Digital Art
There are two core categories of NFTs. One category is NFT collections, like CryptoKitties or the Bored Ape Yacht Club. The other type is exclusive digital artworks that aren’t part of a collection.
The digital assets on the Foundation marketplace are the latter. The marketplace aims to bring artists’ work to light by providing a platform for exclusive, unique, digital works.
Although you won’t find collections of 10,000 computer-generated NFTs on Foundation, you are likely to find a piece of art that inspires you, makes you think, or fills you with emotion. Foundation’s focus on uniqueness and truly creative NFTs has attracted masterpieces from more than 25,000 NFT creators to the platform and will likely continue to attract incredible talent.
Artists Earn a 10% Royalty
Traditional artists like painters, sketch artists, and sculptors rarely receive a royalty when their works are sold on the secondary market. This trend is beginning to change thanks to NFTs.
Most NFT marketplaces give you a way to earn royalties when your digital works are sold on the secondary market. Generally, you have to dictate the royalty you’ll charge. When you mint NFTs on the Foundation platform, you’ll automatically earn a 10% royalty any time your work is sold on the secondary market.
Crypto Wallet Support
When you purchase an NFT, you’ll need to store it securely in a cryptocurrency wallet. The Foundation App supports WalletConnect and MetaMask wallets. Although these are the most popular wallets on the market, the number of options is quite limited compared to other NFT marketplaces.
Pay With Fiat Currency or Cryptocurrency
You can use your credit card, debit card, or Ethereum (ETH) to make purchases on the Foundation NFT Marketplace. Unfortunately, these payment options are also limited compared to other marketplaces that support these payment methods as well as other popular cryptocurrencies like Bitcoin, USD Coin, and Litecoin.
Built on the Ethereum Blockchain Network
The Foundation NFT platform is a decentralized ecosystem that lives on the Ethereum blockchain, which comes with its perks. Ethereum is the most actively developed blockchain in the industry today. It’s also the most stable.
When you use the Foundation marketplace, you can bank on the fact that you will have a quality experience on a reliable platform.
Foundation runs like an NFT auction house, almost like the eBay of NFTs. There are two ways to take part in an auction:
- Place a Reserve Price Bid. Each NFT has a reserve price. The auction doesn’t start until a collector bids at least this price. Place a bid for the reserve price if you find a piece of digital art you’d like to own and the auction isn’t active. This will activate the auction. Then, use the bidding functionality to stay ahead of your competition.
- Bid in an Open Auction. If you find a piece of art you like in an open auction, simply place your bid. Then continue to bid to stay ahead of the competition until the auction ends.
NFT auctions are like any other online auction. They generally last for a few days, and the majority of the activity happens in the last few minutes. Pay attention to when the auction expires, and keep your bidding activity to a minimum until you get close to the expiration time. If you bid too early, you may artificially inflate prices.
Transaction fees on the platform are paid by the seller and amount to 5% of the sale price. That’s double the transaction fees charged at more popular marketplaces like OpenSea and Rarible.
However, Foundation’s fees on primary sales — the first sale in an NFT’s existence — are its saving grace. Most marketplaces charge a higher commission on primary sales than they do on secondary sales — up to 15% in many cases.
You’ll only pay 5% transaction fees on primary sales on the Foundation platform, allowing you to hold onto more of your profits from the initial sale of your art.
Keep in mind that you’ll also have to pay gas fees when taking part in NFT transactions. These gas fees aren’t set or collected by Foundation or any other NFT exchange. Instead, these are fees set and collected by the blockchain that hosts the data at the heart of your digital collectible. In Foundation’s case, that’s the Ethereum blockchain, which can sometimes be expensive.
Advantages of Foundation NFT Marketplace
Foundation may be new, but it’s attracting world-class artists and collectors. Some of the biggest advantages of the platform include:
- Solid Royalties on Minted NFTs. When you use Foundation to mint and sell your digital art, you’ll earn a 10% royalty every time one of your works is sold. This gives artists a new way to tap into residual income.
- Low Primary Sale Fees. You’ll only pay 5% of the sale price on the first sale of your digital art, meaning you’ll hold onto more profits with Foundation than most other platforms.
- Unique Digital Art. If you’re a collector, the benefits to the artists mentioned above are good for you too. Those perks have attracted multiple world-class artists to the platform, meaning you’ll be able to find jaw-dropping works of art.
- Auction Approach. The Foundation takes an auction approach to the sale of its NFTs. You may be able to snag a great deal on occasion with a perfectly timed bid.
Disadvantages of Foundation NFT Marketplace
The Foundation NFT marketplace is a great platform whether you’re an artist or a collector, but there are a few drawbacks:
- High Secondary Market Fees. Transaction fees are 5%, whether they are on the primary or secondary market. Leading NFT marketplaces like Rarible and OpenSea only charge 2.5% transaction fees. Even SuperRare, the closest competitor to Foundation, only charges 3%.
- Limited Cryptocurrency Support. You can only use a credit card, debit card, or Ethereum to make payments on Foundation. Most NFT marketplaces offer many more cryptocurrency-related payment options.
- Ethereum. The marketplace is built on Ethereum, which means you’ll pay Ethereum gas fees when you use it. Ethereum fees can be high at times, sometimes as high as hundreds of dollars.
- Small Collector Base. Although there are around 25,000 artists on the platform, there are only about 20,000 collectors. Even if every collector purchased one piece of art from a different artist, that would mean 5,000 artists would never sell a thing.
How Foundation NFT Marketplace Stacks Up
Foundation’s closest competitor is SuperRare, but its largest competitor is OpenSea. Check out the chart below to see how it stacks up to its competition.
|Foundation NFT Marketplace||SuperRare||OpenSea|
|Gas Fees||Paid when you mint NFTs.||Paid when you mint NFTs.||Paid when you sell NFTs.|
|Secondary Market Transaction Fee||5%||3%||2.5%|
|Primary Market Transaction Fee||5%||15%||2.5%|
|Who Pays the Transaction Fee||Seller||Buyer||Seller|
|Types of NFTs Available||Unique, single-run artworks.||Unique, single-run artworks.||All NFT types.|
Foundation NFT Marketplace FAQ (Frequently Asked Questions)
It’s normal to have questions, especially when working in an industry that’s in its infancy. Some of the most common questions about the Foundation NFT marketplace are answered below:
How Much Does Foundation Charge for NFTs?
Foundation doesn’t set the final sales price on the NFTs on its platform. NFTs are priced through an auction where buyers place bids and the highest bidder wins. In some cases, you may be able to get your hands on a quality NFT for around $50; in others, you could need to be willing to pay thousands to win an auction.
Foundation does charge a 5% transaction fee on all transactions using its marketplace, but those fees are paid by the seller, not the buyer. You’ll also have to take gas fees into consideration when purchasing NFTs.
Is Foundation the Best NFT Marketplace?
Foundation’s secondary market fees are significantly higher than its competition, and both its artist base and collector base are relatively small. Although you may find great deals on unique pieces of art from time to time, few NFT enthusiasts would call it the definitive marketplace in the industry.
Foundation’s biggest redeeming quality is its low primary transaction fee. You’ll also find some quality NFTs on the platform that aren’t available anywhere else.
Is the Foundation NFT Marketplace Safe?
The Foundation marketplace is decentralized and lives on the Ethereum blockchain. Ethereum is the most actively developed blockchain online today, and one of the most secure.
When you make a purchase on the Foundation platform, you’re agreeing to the terms in a smart contract. When that contract is finalized, you’ll automatically receive the art and pay the money you’ve agreed to, or vice versa. All this happens automatically on the Ethereum blockchain without a central third party’s involvement, making it one of the safer ways to transact online.
The metaverse includes a growing world of digital art and property, and it’s no surprise you’re interested in getting involved. Foundation is a quality platform and should be one of your points of entry into the market, especially if you’re an artist or you’re interested in unique pieces.
However, it shouldn’t be your only doorway to all that the metaverse has to provide. The platform is young and still has some significant hurdles to overcome. High secondary market fees will likely turn off many collectors. Also, the platform has a smaller collector base than it does an artist base, which will leave some artists without an audience to captivate.
Nonetheless, whether you’re an artist or a collector, Foundation makes a strong secondary or tertiary source for access to the NFT industry.