There are several stories detailing the origins of the challenge coin. According to the most common story, challenge coins originated during World War I. American volunteers from all parts of the country filled the newly formed flying squadrons. Some were wealthy scions attending colleges such as Yale and Harvard who quit in mid-term to join the war. In one squadron, a wealthy lieutenant ordered medallions struck in solid bronze and presented them to his unit. One young pilot placed the medallion in a small leather pouch that he wore about his neck.

Shortly after acquiring the medallion, the pilots’ aircraft was severely damaged by ground fire. He was forced to land behind enemy lines, and was immediately captured by a German patrol. In order to discourage his escape, the Germans took all of his personal identification except for the small leather pouch around his neck. In the meantime, he was taken to a small French town near the front. Taking advantage of a bombardment that night, he escaped. However, he was without personal identification. He succeeded in avoiding German patrols by donning civilian attire and reached the front lines. With great difficulty, he crossed no-man’s land.

Eventually, he stumbled onto a French outpost. Unfortunately, saboteurs had plagued the French in the sector. They sometimes masqueraded as civilians and wore civilian clothes. Not recognizing the young pilot’s American accent, the French thought him to be a saboteur and made ready to execute him. He had no identification to prove his allegiance, but he did have his leather pouch containing the medallion. He showed the medallion to his would-be executioners, and one of his French captors recognized the squadron insignia on the medallion. They delayed his execution long enough for him to confirm his identity. Instead of shooting him, they gave him a bottle of wine.

The oldest challenge coin known in existence.

While a number of legends place the advent of challenge coins in the post-Korean Conflict era (some as late as the Vietnam War), or even later, Colonel William “Buffalo Bill” Quinn had coins made for those who served in his 17th Infantry Regiment during 1950 to 1958.

On one side of the coin is a picture of a buffalo with the date 1812, which signified the year the unit was formed. On the other side was the 17th Infantry patch with the dates 1950 – 1958 and the word Korea to signify the tour. The cross and fort icon represent the units heritage which started in Cuba during the civil war. This coin is recognized as one of the oldest and most valuable challenge coins in circulation. Very few remain available and most are thought to be in private collections or museums.