Fungible tokens represent a unit of value that can be exchanged for another unit of the same kind without any difference in value or utility. This means that each token is identical and can be replaced with another of equal value. The most common example of fungible tokens is cryptocurrencies like Bitcoin or Ethereum, where each coin has the same value and can be exchanged freely. Fungible tokens are often built on blockchain platforms and can include various standards like ERC-20 for Ethereum. Their fungibility enables them to be easily divided, traded, and transferred within digital wallets.