Launched in February 2021 by Matthew Vernon and Kayvon Tehranian, Foundation NFT is an application that makes live auctions of NFTs easier. The application runs on the Ethereum blockchain and aims to provide both creators and collectors with a decentralized and non-fungible way of creating beneficial artwork and monetizing it by sharing it with others. What makes Foundation NFT different from other NFT marketplaces is its ease of use since it is easy to bid on digital art on the platform. In this article, we discuss the Foundation NFT platform in detail.
What is Foundation?
Foundation is an invite-only NFT marketplace for both creators and collectors. Since its launch in February 2021, Foundation has grown to become one of the largest NFT platforms on the web. So far, the platform has generated more than 39,000 ETH for its creators. Foundation has hosted notable auctions such as the Nyan Cat animation and Edward Snowden’s first NFT.
NFT Foundation is a platform building a new creative economy where creators can use the Ethereum blockchain to value their work using new ways and create strong connections with their supporters.
What is Foundation NFT?
Foundation NFT refers to digital art NFT offered by Foundation exclusively to its invited members. The Foundation NFT marketplace currently has more than 100,000 NFTs on sale. The prices of the Foundations NFT are listed in ETH, and buyers must have ETH in their NFT wallets to place their bids.
There are two types of NFT marketplaces: primary and secondary. Primary NFT marketplaces are for NFTs that are being sold for the first time. Secondary NFT marketplaces are for NFTs that were already sold and are being resold. The process of bidding for both types of NFTs on NFT marketplaces is the same. The Foundation NFT marketplace charges a service fee of 15% on all NFT sales on its platform.
You must receive an invite code to mint NFTs on Foundation. Only members who have sold at least 1 NFT on the marketplace can send invitations. However, there are no restrictions for collectors.
How Does the Foundation NFT Marketplace Work?
You can only start minting an NFT on Foundation after receiving an invite from a member who has sold at least 1 NFT on the marketplace. The platform also requires you to connect your wallet to the marketplace. The wallet should have enough ETH to cover the gas fees charged for minting NFTs. After placing a bid on an NFT, the gas fee is placed in a smart contract escrow. If they don’t win the bid, the gas fee is returned to their wallet.
NFT creators can list their NFTs for auction on Foundation NFT with a base “reserve price.” The reserve price is the minimum bid price for the NFT. When a collector places a bid on the NFT, an automatic 24-hour countdown starts. If the NFT is not sold within 24 hours, the auction is closed.
If a collector places a bid 15 minutes before the close of the auction, the auction is extended for 15 minutes. The auction can be extended indefinitely provided bids are placed within 15-minute intervals after the last bid.
Once a collector wins a bid, the NFT is immediately transferred to their NFT wallet. The NFT also appears under the collector’s profile. The collector can go ahead to list the NFT in the Foundation virtual gallery and share it with others on social media.
How to Create a Collection on Foundation NFT
A collection is a smart contract with a creator’s NFT. The creator has ownership and control of the NFTs that are minted for their smart contract.
Before starting to create a collection and mint a Foundation NFT, you must connect your NFT wallet to the platform.
The NFTs within a collection are kept together. You can mint any number of NFTs within a collection. The following are the steps for creating a collection on the Foundation NFT marketplace:
Step 1: Connect your wallet
Visit the official website of the Foundation NFT marketplace and click “Connect” on the upper right corner of the window.
Choose the NFT wallet to connect to the platform on the new popup. The main wallets on the platform are MetaMask and Coinbase wallet. Authorize the wallet to connect to the platform by providing your security credentials.
Step 2: Create a Collection
Click “Create” in the upper right corner and choose “Collections” from the sidebar. You will need two elements to deploy the smart contract for the collection: collection name and collection symbol.
These details will be recorded on the blockchain and they will represent the collection in Web3. Note that once recorded, they can’t be changed.
Step 3: Deploy the smart contract
Deploying the smart contract means creating an exclusive on-chain record. Click “Deploy the smart contract” and authorize this by signing the transaction in the wallet, and then paying the gas fees. The smart contract will be deployed.
Step 4: Customize the collection page
Once the smart contract has been deployed, you can still visit the collection page and customize it. Just open the collection page and click “Edit Collection.”
How to Mint a Foundation NFT
Open the collection page and click the “+ Mint NFT” button to open the asset upload page for uploading the NFT file.
You will be asked to add the NFT file and give it a title and a description. The title should not exceed 50 characters, while the description accepts up to 1,000 characters.
It is good to check well and ensure that all details are correct since they cannot be changed once recorded on the blockchain. In case you make a mistake, the only solution is to burn the NFT and start the process again.
Carefully review the NFT details and mint it by following these steps:
Step 1: Click “Preview” to review the details of the Foundation NFT.
Step 2: Click “Mint NFT” and sign the transaction.
Step 3: Pay gas fees to complete the transaction.
Once the minting process completes, it means that the NFT has been recorded on the blockchain and that it is ready. Open the NFT page and add tags to it. You can add a maximum of 10 tags and edit them at any time. The tags will enable collectors to find your work.
How to Sell a Foundation NFT
The Foundation NFT platform offers different ways of selling an NFT: Buy Now, Offers, and Auctions.
This method of selling Foundations NFT requires you to set a fixed price for your NFT. A buyer can buy the Foundation NFT immediately, and ETH will be transferred to the seller instantly.
To sell your NFT Foundation using this method, pick the NFT to be sold and click “Sell NFT.” Enter the price for which you want to sell the NFT.
Finally, confirm the transaction and pay the gas fees. The NFT will be listed for sale on the Foundation NFT marketplace.
For a complete guide on how to price your NFT, read this article.
Offers expire after 24 hours. Hence, you must accept offers on your Foundation NFTs within that duration. To accept an offer on a Foundation NFT, simply click “Accept Offer” to confirm the transaction. The NFT will be sent to the buyer and you will receive ETH in your wallet. If you don’t want to accept the offer, just wait for a 24-hour window to run out.
This method of selling a Foundation NFT involves setting a reserve price, which is the minimum price for which you want to sell your NFT. All bids on the NFT must meet or be above that amount.
It is easy to set the reserve price of an NFT. Open the NFT page and click “Sell NFT.” Enter the reserve price for the NFT and approve the auction contract. The NFT will then be listed for sale.
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