So the story goes, during WWI, a pilot in the futuristic new “air corps” commissioned custom medallions for his wingmates. The coin depicted their unit’s insignia, were gold-plated, and were such a nice memento the pilots carried theirs into battle for luck. One lieutenant was shot down behind enemy lines, managed to escape capture, but found himself in trouble when he got back to allied ground. Uncertain if he were a spy or saboteur, the French soldiers were preparing to execute him – when he remembered his medallion. It served as enough of an ID that he was allowed enough time to contact his unit and confirm his identity. This is the legend of the origin of challenge coins.
As I was reading an article about a challenge coin entrepeneur, I first figured these were something like military base currency certificates, but these fit more in the ‘commemorative medal’ vein of exonumia. Challenge coins are an informal way of commemorating aspects of service, whether or not it deserves an official ribbon. Challenge coins primarily come from superior officers or fellow soldiers, as a way of recognizing good work, everything from a successful training mission to bravery in the field. They’re called “challenge coins” because you don’t want to be the challenged one if you haven’t earned one. During a night on the town, if a fellow soldier produces his challenge coin he expects you to buy the drinks…unless you can show your challenge coin, too. If you haven’t got yours, drinks are on you; if you’ve got your coin, however, drinks are on him. It’s one more fraternal game among soldiers to build cameraderie and inclusion – while encouraging positive behavior from your fellow soldiers, because you don’t want to be the one who hasn’t got their challenge coin.
Around the edges of the informal commendations is a secondary market for used challenge coins and custom unearned challenge coins that fall cleanly in the commemorative medal realm. Numerous manufacturers produce these coins and offer them for sale online – eBay has thousands at any given time – for collectors to round out their challenge coin collection. Quality varies greatly from coin to coin, and some seem to skirt the edge of rinky-dink tchotchkeness, but in that variety some fine specimens can be found, especially the cloisonned examples like those above, and one of every possible aspect of a soldier’s time in the service. From regiment, to tour of duty, to aircraft or tank, to military action, to military base – a devoted collector can assemble an entire military history in challenge coins if they are so inclined.
The practice of exchanging and collecting challenge coins has extended beyond the military to include police, firefighters, other governmental groups, and even fraternities. The coins are a sign of inclusion and participation, whether displayed on the wall or carried in your pocket, just in case, a compatriot taps his on the bar and says he needs a drink.

