Challenge coins are not really coins per se.
They are not made by the Federal mints.
And they are not used as currency.
Challenge coins first made their appearance during World War I.
The History Of Challenge Coins
The story is...Each member of a particular WWI airborne squadron was given a bronze medallion by their lieutenant.
One of these soldiers was captured by the Germans and later escaped, only to be re-captured by the French. The French, not knowing that the soldier was a friendly American, were set to execute him. But before the time came, one of the Frenchmen recognized the medallion that was worn by the American and his life was spared.
Why Are They Called Challenge Coins?
Following World War I, it became a growing tradition to carry these medallions, or "coins", and it was a fun little game that gave them the name "challenge".It went something like this...
Squadron members would challenge one another to reveal their coins. If the member being challenged did not have his or her coin on them, they would have to buy a drink for the person who challenged them. If, however, they could produce the coin, then the challenger had to buy them a drink. Thus, the "challenge coin" evolved.
Modern Day Challenge Coins
Today, challenge coins are everywhere. It may not seem like it, if you're not particularly looking for them, but they are used by police departments, fire departments, colleges, fraternities, special clubs, etc.Just type in challenge coins on E-bay and look them up. There are hundreds!
View many types of challenge coins here. (Even more challenge coin pictures here.)
Are Challenge Coins Worth Collecting?
Most coin collectors don't collect challenge coins. A few may, but not the majority. Still, a number of people do collect and trade challenge coins -- just for the fun of it.
Challenge coins aren't worth a whole lot, maybe a few bucks each. However, they can still be fun to collect, and there are even a few really good looking displays that they make just for storing and displaying your challenge coins.
Make Your Own Challenge Coin
You may also be interested to know that you can have your very own challenge coin! That's right, isn't that neat?You design your own coin on paper (or have someone draw it up for you), including the depiction and what lettering you want on it. Then, choose from a handful of businesses that will make a challenge coin out of it, like these:
At some places, you may be able to just write them and describe what you're wanting and they can draw it up for you.
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