Foundation Review: Is it legit, safe and trustworthy for UAE citizens and residents?
The Foundation has been operating since the year 2020 and has its headquarters in the United States. The majority of the non-fungible tokens that are minted and sold at this location are creations by more well-known NFT-creators. However, if you are seeking for inexpensive NFTs created by unidentified artists, you may find some of those here as well.
"Non-Fungible Tokens" is what "NFT" stands for as an abbreviation. Anything that
can be changed into another form may be replaced. For instance, one kilo of 24
karat gold may, at least in principle, be replaced with any other kilo of 24
carat gold. This is because 24 karat gold is not distinguishable by its color.
If something is non-fungible, it denotes that it is one of a kind and cannot be
interchanged with any other object that is currently available.
Despite the fact that NFTs are theoretically comparable to cryptocurrencies, these digital assets may represent antiques and artworks, collectibles such as trading cards, and other objects that have distinctive characteristics. For the purposes of authentication and validation, these tokens are encrypted and stored in a distributed ledger known as a blockchain. In contrast to cryptocurrencies, which may be divided up into smaller pieces, tokens are always sold in their whole when they are bought or sold. When NFTs are cut up into smaller pieces, they lose some of their value. On the other hand, the artist may make copies of them, and each extra copy can be sold independently (but the total number of duplicates will then always be known).
The exclusive presentation of digital art is the primary mission of Foundation. The system was developed on the Ethereum network, and in order to utilize it, you will need to link a wallet to your account (such as MetaMask).
Various NFT Marketplaces offer their NFTs, the most recent bid, the amount of time left in an auction, and other information in a variety of different ways. It is up to you and no one else to decide what kind of content you are most at ease watching and utilizing. The image that may be found below is a screenshot taken from the explore area of Foundation. The auction that is going to end in the least amount of time is presented first by default when sorting the available options.
The following description of the page layout applies if you zone in to one of the specific NFTs; in this example, it refers to the NFT titled Point of No Return, which was designed by the artist @levelbevel. As can be seen in the image that follows, the primary components of the layout are information regarding the amount of time that is still available for the auction, the current bid amount in ETH (along with the equivalent amount in USD), the rarity of the item, and a condensed description of the item.
It is common practice for the NFT Marketplace that is relevant to the transaction to charge a fee for the privilege of facilitating the sale of an NFT. The buyer is often responsible for paying this cost, which is typically expressed as a percentage of the selling price of the NFT. When a transaction takes place, this is analogous to the way in which conventional art galleries often receive a commission on the sale of any paintings or other works of art that are on display at the gallery.
You will be required to pay a service charge of 15.00 percent when you bank with Foundation. Although we are not aware of any additional NFT Marketplaces that charge fees that are greater than this, there are a couple that charge the exact same amount (15.00 percent ). These costs do not include the Ethereum gas fees that are necessary for the Ethereum network to complete transactions and are not included in this total.
Even though this is one of the NFT Marketplaces that has one of the highest commission rates, 15.00 percent is still regarded to be a fairly competitive cost when compared to a standard physical art gallery (where 30-50 percent in gallery fees is not entirely uncommon).
Be aware that if you buy an NFT from Foundation and the price is set at USD 1,000, only USD 150 of that will go toward the purchase of the NFT itself; the remaining USD 75 will go toward covering fees that are in addition to the value of the NFT itself. This is something to keep in mind if you decide to make such a purchase.
There are certain NFT Marketplaces online that will take deposits and payments made with a credit or debit card, and there are others that will allow deposits and withdrawals made using PayPal.
Foundation is not one of them since it does not let withdrawals or deposits to be made using credit or debit cards, PayPal, or any other online payment service. Therefore, in order to engage in activities on this specific market, you are required to have an existing supply of ETH in your possession.
Foundation is a marketplace for NFT art that gives creators the opportunity to purchase and sell NFT artwork in an auction format. Once a minimum bid has been set, the auction will continue for a full day.
The firm was established in the year 2020, and one of its primary focuses is the curation of unique digital art. Foundation is organized more like an art gallery, and it has displayed digital works by well-known NFT artists such as Kevin Roose, Pak, Jack Butcher, and others.
Because of all the excitement around the new creative economy, many online markets have been inundated with new mints, forcing prospective purchasers to search through a large number of GIFs and memes in order to locate the asset in question. Because Foundation wants to keep things straightforward, the varieties of items sold on their site are kept to a few. This makes it easier for purchasers to locate potentially expensive paintings.
Foundation is a decentralized exchange (DeFi) platform that is built on top of the Ethereum blockchain that enables users to purchase and sell one-of-a-kind digital artwork. Other notable examples of similar NFT marketplaces are OpenSea and Rarible. Having said that, getting the ability to sell on Foundation is quite tough because you require an invite from one of their already established artists in order to do so.
When creators put their crypto art up for auction, they often include a "reserved" price that must be reached before the bidding may begin. A twenty-four-hour action will start once a potential purchaser submits an offer that is high enough. In the event that a bid is put inside the final 15 minutes of the auction, the timer will be reset to 15 minutes and remain there permanently. At the conclusion of the auction, the transaction will be finalized between the two parties.
Foundation generates revenue by the collection of commissions on main sales, in a manner analogous to that of other specialized markets such as SuperRare. At the time of the transaction, the providers of the artwork will pay 15 percent of the sale price to the platform. Having said that, as the originator of the non-fungible tokens, the artist will earn royalty payments equal to ten percent of the proceeds from any future sales of their work, and these payments will continue indefinitely.
Ether (often abbreviated as ETH) is the sole kind of cryptocurrency that may be used on the Foundation.app platform. You are unable to make a purchase using bitcoin (BTC), a credit card, or any other kind of fiat cash (USD, GBP, AUD, etc.).
You will need to connect a web3 wallet that operates on the Ethereum network in order to utilize the platform. One example of such a wallet is MetaMask.
On Foundation, as a buyer, you will have access to all of the following types of NFTs to explore through:
Interactivity is a hallmark of 3D artwork. Hold down the click button and drag the mouse to see the NFT from any angle you choose.
Picture: One of the most common kinds of non-fungible tokens is a still image, which can be either a photograph or a work of digital art. Images are becoming increasingly popular.
Video - Video assets typically have music in the background, and they can take the form of either film or animation.
In the not-too-distant future, the site will reportedly make it possible for producers to publish audio files.
In order to purchase an NFT on Foundation, you will be required to link a web3 wallet to the platform and ensure that it contains sufficient ETH to cover the cost of the digital art as well as the gas costs.
After that, you will be
required to carry out the following actions:
First, locate the non-fungible token that you are interested in purchasing and submit a bid for it (meet or exceed reserve price or current price on the auction house). In the event that the auction has already begun, you will be required to collect either 10 percent of the total or.1 ETH.
Step 2: If other people outbid you, you will have to continue placing bids in order to buy the NFT. You may keep track of your bids by using the option that is located in the top right corner of the page.
Step 3: Once you have established that you are the highest bidder for the NFT, complete the transaction on the Ethereum blockchain.
Your organization's possessions will not be taken into custody by the Foundation. The primary purpose of the platform is to act as a marketplace where buyers and sellers can connect with one another. A web3 wallet, such as MetaMask, is required in order for you to be able to store your NFTs.
When you have finished making your Foundation purchase of digital art, you will need to settle the transaction before you can add the item to your wallet. You may accomplish this by selecting the "Bids" option, which is located in the top right corner of the screen.
To further ensure the security of your digital assets, you should also consider purchasing a hardware wallet. Your browser or computer might be hacked, which would result in the loss of any NFTs that you hold in a browser-based wallet.
Foundation has decided to limit the amount of artists with whom they collaborate in order to maintain the cleanliness of their own personal NFT environment. At this time, in order to use the platform, you will need to either receive an invitation from an existing digital artist or participate in Community Upvote.
After you have been invited, you will be provided with a URL that will enable you to mint an NFT on the platform once you have access to it. The following is an outline of the sales process:
First, mint an NFT by following the URL that has been provided.
The second step is to put the item up for auction, fill in any essential information, and decide on a reserve price for it. Your reserve price is the very lowest amount of money you would be willing to take in exchange for your digital artwork. Keep in mind that at the point of sale, you will be required to pay a commission to the platform in the amount of fifteen percent of each transaction.
Step 3: To put your item up for auction, click the link that says "List your NFT." At this time, the Ethereum blockchain will require a gas charge payment from you in order to continue processing the setup. You may view an estimate of how much longer it will take by clicking the "View on Etherscan" button.
Your NFT will be placed in escrow at the Foundation from from moment forward, where it will remain until the conclusion of the auction (or is canceled). Your non-fungible token will not be held by the Foundation under any circumstances. IPFS, a peer-to-peer hypermedia protocol, now serves as the hosting platform for all digital artwork.
In the fourth step, you will advertise your crypto art on Twitter and other social media platforms in order to boost sales and create buzz.
You won't be able to sell your digital assets in any other way than through auctions, in contrast to existing NFT platforms. You, as the seller, are responsible for establishing the "reserve" price, which must be fulfilled before the auction timer may begin. Interested parties have another day and a half to place their bids. In the event that a bid is placed in the final 15 minutes of the auction, the timer will be reset to 15 minutes and remain there permanently.
Commissions on main sales are the principal source of revenue for the Foundation. The buyer will make a payment to the platform equal to fifteen percent of the value of the newly generated assets.
When you make a purchase through Foundation, you won't be required to pay any fees to the platform; nevertheless, you should be informed that Foundation will give the original artist 10% of the proceeds from any secondary sales. In addition to that, at the time of sale, you will be required to pay gas costs to the Ethereum network.
It is risk-free to apply foundation. Your NFTs will never be held in possession by the platform. Instead, until the conclusion of the auction, both the physical object and the monetary component of the current bid are held in escrow by a digital contract. The transaction between the buyer and the seller will then be finalized at this point.
Within the realm of blockchain technology, you really must be on the lookout for phishing websites. If you are following direct connections to Foundation, check that you are on the Foundation.app website before purchasing or selling anything. Scammers may frequently replicate a website in order to steal your personal information or your money.
Foundation's strengths and weaknesses:
The user interface of Foundation has a relatively simple design, making it very simple to use and navigate. You may also utilize their filters to simplify the tracking of your bids and reduce the number of options available to you.
Royalties The creators of the work are entitled to a royalty rate of ten percent on all secondary sales made in perpetuity after the first sale of their work.
Auctions are quite popular. Auctions naturally generate a lot of excitement and FOMO, which enables producers to frequently make a little bit more than they had anticipated earning from their work.
There are less NFTs on the marketplace since the platform is highly picky in who they deal with. This makes it simpler for artists to attract attention to their work because there are fewer NFTs on the marketplace.
ETH — The only way to purchase NFTs is with ether (ETH). You will not be able to acquire them by purchasing them with any other cryptocurrency, including bitcoin, or with fiat cash.
Commission costs Artists are required to pay a hefty commission of 15 percent on the primary sale of their work. These fees are deducted from the sale proceeds. In spite of this, there are other markets that operate more like art galleries, making this one of the most competitive options.
Reviewed by Arpita Singh
Arpita Singh is the main writer at ForexBroker.ae. As a senior investment professional with 10+ years of experience working at top-tier Private Equity and Sovereign Wealth Fund; she is also responsible for fact-checking concepts, reviews, and related details about brokers and exchanges listed on this website. Full Bio.