Answer: It is a scary to see an unexpected growth taking over, but in this case, don't worry. Fungi and molds are specific to what they'll consume. Since the mold is growing on dead matter (the peat pot), it probably wouldn't even survive on green, growing plants. Overwatering is a threat to your seedlings, however. It can encourage another kind of fungus that causes damping off, which is lethal to seedlings, and in general, soggy soil stunts plants. For now, cut back on watering and set up a fan to help keep air moving, which also discourages mold growth by keeping surfaces dry. Enjoy!
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