Despite crypto’s fall from grace, tech companies are still placing bets on NFTs, even though many weren’t in the blockchain space to begin with.

Ebay acquired NFT marketplace KnownOrigin as a part of its crypto push. Last year it started letting users trade NFTs, and last month, it launched its own collection.

• Others are also showing NFT enthusiasm. Salesforce announced plans in February to launch an NFT cloud service (though its employees were not happy about it).
• GameStop recently announced plans for both an NFT marketplace and a crypto wallet. And this week, Shopify added new integrations for people to utilize their NFTs.

VCs also continue to pour money into NFTs. NFT-related startups have raised more than $3.3 billion in the past year. Marketplace Magic Eden this week raised $130 million in a series B, just three months after closing a $27 million series A.

But is the hype worth the risk? Crypto is crashing, and there’ve been layoffs at major blockchain companies.

• Last month, Morgan Stanley warned that the NFT market could be the next to crash as crypto plummets. Meanwhile, trading volumes have tanked this year, and sales revenue was down 20% month-over-month in May.
• And the marketplaces themselves are taking a beating, too: OpenSea has been plagued with lawsuits and fraud for issues including theft, plagiarism and insider trading, which led to the arrest of its former executive. Earlier this year, Cent, which sold Jack Dorsey's tweet for $2.9 million, shut down most sales due to "rampant" fraud.

Despite indications that NFTs might be in trouble, people's spirits seem high still. The NFT.NYC conference even has a puppy room and a meditation den. But as crypto crashes, potentially taking down NFTs with it, and fraud in the space continues to run rampant, companies may want to keep their guard up.

— Nat Rubio-Licht