Non-fungible tokens (NFTs) are cryptocurrencies that do not possess the property of fungibility.
For example, NFTs can be used to represent digital art: at one point, an extremely popular Ethereum-based blockchain game CryptoKitties associated its tokens with unique images of cartoon cats and allowed users to trade those cats by exchanging the corresponding tokens.
More rarely, a token may become non-fungible by losing its fungibility property as a result of known past activity. For example, if a certain amount of Bitcoin — fungible by default — is used to pay for illegal goods or fund illegal activities and the overall network becomes aware of it, that Bitcoin becomes less- or non-fungible, as it is unlikely to be accepted by exchanges and other service providers.
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