This is my second tank and while trying to get the nitrogen cycle going I ghost fed it some algae wafers I had laying around and now have strange white blobs growing on them. Is it a fungus? Not sure if I need to worry about it.
Not necessarily fungus. I'd say that's a bacterial colony eating the algae wafers.
Side note: Check to see if your tank is generating ammonia? Algae wafers might not have high enough N to get your ammonia up where you want - people usually use shrimp etc.
Its definitely bacteria since its a new tank cycling itself. I do have a suggestion if you want to "jump start" a new aquarium I would add beneficial bacteria. A brand that is great quality and what I use is definitely Microbe-Lift Special Blend Aquarium Cleaner!
Note: this doesn't have bacteria for corals to grow right away but will definitely be able to add fish sooner than without it.