What is Foundation? NFT Marketplace Explained
Are you wondering what Foundation is, how to use the platform to buy and sell your NFTs? Learn everything you need to know below.
NFTs are the latest wave in the trend of blockchain technology. Some of these digital collections have been a big hit in the crypto space, some have even skyrocketed in value. So it’s no surprise that many have been considering getting into the NFT space and to either buy, sell, or collect NFTs.
For those wondering, buying and selling NFTs is easier than you might think! Just as you would buy things online at Amazon or Ebay, NFTs have their own marketplace.
Foundation is one such marketplace for NFTs. It’s a platform that allows creators and collectors to buy and sell artwork in an auction setting.
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. And if you want to know how to use the Foundation platform? We’ve got that covered—keep reading!
Before we get into the details of what is Foundation, let me give you a quick brief of what NFTs are.
Non-fungible tokens (NFTs) are a type of digital asset that is unique and cannot be replaced or interchanged because it represents ownership of an Internet collectibles like art, music, games avatars, and more with an authentic certificate created by blockchain technology called smart contract.
NFTs allow you to buy, sell, and trade in much the same way as you would with any other crypto asset, but because of built-in smart contract technology, there are added benefits like ownership, one-of-a-kind assets that only you who owns it.
This features will prevent people from claiming your digital artwork as their own if they do not have the smart contract to verify ownership of that NFT.
What is Foundation?
Founded by Kayvon Tehranian and Matthew Vernon in February 2021, Foundation is an NFT marketplace that allows users to buy, sell, and trade digital artwork.
Artists who create non-fungible tokens (NFTs) can upload their work to the site, while users can bid on the art using Ethereum (ETH) currency. The winning bidder can then store their purchase in a Metamask wallet or sell it on other NFT marketplaces like OpenSea or Nifty Gateway.
The Foundation team has worked hard to create a simple interface that streamlines the bidding process and makes it easy to place bids on digital artwork.
Pros and cons of Foundation
|✔️ Easy to Use – Foundation offers a clean and easy-to-use design that makes placing and tracking bids quick and efficient.|
|✔️ You can earn royalties – When minting and selling your digital art, you will earn 10% royalties on all secondary sales in perpetuity.|
|✔️ Auction Features – The Foundation will auction off NFTs on occasion. You may be able to get a great deal by bidding at the right time.|
|✔️ Much safer – When you purchase an NFT, it doesn’t get stored in Foundation platform. Instead, it gets stored in your own wallet.|
|❌ Low Collectors count – The number of artists and creators is greater than the number of collectors, which can be frustrating for some who can sell a single piece|
|❌ High Marketplace fee – Foundation charges a 5% marketplace fee, which is slightly higher than several of its competitors’ rates.|
|❌ ETH only – You can only purchase NFTs with Ethereum (ETH).|
In summary, The platform is straightforward, easy to use, and well-designed. As with many other NFT marketplaces, it can take some getting used to for new users.
The Foundation allows you to divide your royalties in a Split. When you mint an NFT as a group, you can create a Split and add the wallet addresses of up to four recipients, along with the percentage each will receive.
How to Buy and Sell NFTs in Foundation
To start using Foundation to buy and sell NFTs, you need the following:
- Supported Ethereum crypto wallet: such as MetaMask, Trust Wallet, etc.
- Cryptocurrencies to buy: Foundation currently supports transactions using Ethereum (ETH) only.
When you buy or sell NFTs through the Foundation’s marketplace, you’ll be charged a 5% fee on initial sales. That’s in addition to any gas fees associated with the transaction. When you try to resell it on secondary market, there’s also a 10% fee paid to the original creator of the NFT as part of royalties.
Setting up your wallet
To store your cryptocurrencies, you will need a crypto wallet supported by the platform. Some wallets you can use are Trust Wallet, Metamask and more.
To give you a better idea of how to set up a wallet, we’ll use the Metamask as an example
Metamask is an Ethereum wallet that allows you to interact with non-fungible tokens (NFTs). You can use it to deposit, withdraw funds, store NFTs and more. You can also connect Metamask wallet to Foundation.
The Metamask wallet is available for desktop and mobile devices. Go to the official Metamask website to download the right app for your device.
Or, To use Metamask with your mobile device, search the Apple App Store or the Google Play Store for Metamask and download the app for your iOS or Android device.
Check out our step-by-step guide on how to set up your Metamask wallet.
How to buy NFTs on Foundation?
Step 1. Get to know the project by exploring it.
When you’re deciding which NFTs to buy, start by reading the project’s whitepaper, roadmap, and social media profiles.
If they have a Discord community, join in and check out the activity. Also look at the project’s stats on Foundation.
Step 2. Get your funds ready
To buy an NFT on Foundation, you’ll need to connect a web3 wallet like Metamask that you’ve created based on the simple guide above to the platform with enough ETH for the digital art and gas fees.
Once you’ve done that, click on the “Connect Wallet” button and complete the steps outlined.
Step 3. Buy your first NFT
Once you’ve funded your wallet with some ETH and connected it to the Foundation, you can now choose and purchase whichever NFTs interest you.
There are two different ways to buy NFTs. You can either “buy now” or make a bid on the auction-style market.
“Buy Now” Market
You can buy NFTs directly from the Marketplace. If a seller has set a fixed price for their NFT, you’ll see a Buy Now button on the item’s page. Click this button and the seller will receive your payment, and you’ll get your NFT stored directly in your wallet where you can then resell it on other platform, nor just keeping it.
Auction Style Market
- Place a Reserve Price Bid.
Each NFT has its own reserve price, which is the minimum you can bid. 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 so that others can bid on it as well. Then, use the bidding functionality to stay ahead of your competition.
- Place Bid in Live Auction
You can bid on an NFT by placing your offer in the open auction. If someone else bids higher than you, you will need to keep bidding until you have won the auction.
You can see your current bid and the time remaining for the auction on the page.
How to create NFTs on Foundation?
Step 1. Get your digital collections ready.
You can use an image of your artwork, a photograph you’ve taken, or any other original creative work that can be turned into a non-fungible token.
You have to make sure that your NFTs represent your value. This will attract people to purchase them. When you create and sell NFTs, you aren’t selling a copy of your work; you are selling the exclusive right to own it.
Here’s a quick rundown of what drives the value of an NFT.
Step 2. Community Support
Now that you have a great product and an audience, it’s time to build a community. Building a community of fans who will love and defend your work is an important part of the journey. And building this community will help you sell your NFTs easily, just like all other kinds of marketing.
The majority of a community’s camaraderie is built online. Twitter, Reddit, Telegram, discord and more are all responsible for helping launch many NFTs communities.
Step 3. Selling your NFTs on Foundation
Remember that NFT minting platforms are part of the decentralized web, and you must use a crypto wallet (such as Metamask) to pay for minting fees by connecting it to the platform.
Once you’ve connected your wallet to Foundation, you can begin selling items on our platform. To sell an item, go to the “create” page and complete the steps outlined.
You can follow this step-by-step guide to creating a collection and minting an NFT.
On the Foundation platform, you can sell your NFTs and get paid in three different ways: Buy Now, Offers, or Reserve Auctions.
Any individual item can be listed using all three methods at once, which means that you can experiment with different techniques to see what works best for you.
- Buy Now: Buy Now allows you to set a fixed price for the sale of an NFT. If someone buys your NFT at that price, you earn ETH right away.
- Accept Offers: On Foundation, all transactions are on-chain. When you create or collect an NFT, you can set a price at which prospective buyers can make an offer. Offers expire after 24 hours, so make sure to accept them before then!
- Reserve Auctions: When you’ve minted your NFT and successfully collected one, you can sell it on the secondary market through list it for auction.
Now that you are familiar with the ways to sell NFTs on Foundation, it is your turn to give it a try. Here you can learn on how to set up your options for selling NFTs.
Foundation is making art auctioning a fun experience for everyone. With a simple user interface and easy-to-use functionality, Foundation.app aims to become the go-to platform for NFT auctions.
Getting paid through the royalties program for creators is good news for all, as well as get good deals at auction if you’re lucky enough. The only downside is that there aren’t many payment options, so you can only buy NFTs with Ethereum (where you can buy it easily).
And when it comes to crypto payment, Easy Crypto can help you simplify your journey by offering more than 160+ cryptocurrencies to choose from, including Ethereum, Bitcoin, and many more.
Buy ETH: add it to your crypto portfolio today.
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Disclaimer: Information is current as at the date of publication. This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.
Last updated November 16, 2022