According to popular Twitter user @SuperRareRoses, Foundation NFT Marketplace has a problem. @SuperRareRoses told his 29.5k followers that the NFT platform isn’t profitable as a secondary market. Secondary sales are an essential part of NFT sales, and they allow the artists to collect royalties on their artwork.
Foundation is a relatively new NFT market platform; it emerged in February 2021. It is barely a year old. The most popular NFT marketplace, OpenSea, was established in 2017. This is perhaps one of the most crucial reasons it might appear less profitable than other platforms. Secondary sales of NFTs are directly affected by this.
Foundation isn’t as big as other platforms. It means that it doesn’t have as many people buying art. However, don’t be misunderstood; Foundation’s artists are incredible. You can find tons of fantastic unique artwork.
Additionally, the website also has a running total for the amount made by creators since its inception. Artists get 10% royalties on their work.
Currently, the total is 47,782 ETH. Although it is not as much as more prominent platforms, there is a good buyer market there. There is no Secondary sales NFT data, but at 10%, it is undoubtedly a lot.
Finally, Foundation is the 9th largest NFT platform. It will be interesting to see how it develops over the coming year. As the platform grows, so will the amount of NFTs sold using secondary sales.
More and more NFT platforms are appearing daily, so it will be interesting to see which platform emerges as the most important of 2022.
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This article is educational material.
As always, make your own research prior to making any kind of investment.