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What is a Fungible Token?

A fungible token is a physical currency or digital asset that’s equal in value and is mutually interchangeable with assets of the same type. For example, a Bitcoin is always valued the same as another Bitcoin.

Related Term:

Commodity

Categories:

Regulation

Legal

Fungibility denotes that one unit of a commodity is equally exchangeable for another unit of the same commodity, such as one barrel of West Texas crude oil being equivalent to any other.

Therefore, a fungible token is a physical currency or digital asset that is always equal in value and is mutually interchangeable with assets of the same type. For example, a Bitcoin is always valued the same as another Bitcoin.

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