According to one story, challenge coins originated during World War I. American volunteers from all parts
of the country filled the newly formed flying squadrons throughout Europe. 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 members of 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. Back at his
squadron, it became tradition to ensure that all members carried their medallion (or coin) at all times.

This was accomplished through “challenge’s” in the following manner - a challenger would ask to see the
medallion. If the challenged could not produce a medallion, they were required to buy a drink of choice for
the member who challenged them. If the challenged member produced a medallion, then the challenging member
was required to pay for the drink. This tradition continued on throughout the war and for many years after the war
while surviving members of the squadron were still alive.

The intent of the initial challenge was to prove membership in a particular unit by producing the unit coin.
That was followed by the addition of the requirement to "buy a round" if a member of the unit didn't have a
coin. Buying a round isn't the only challenge these days. Sometimes drinking is frowned on, so the challenge
can be anything. If you don't have your coin, you have to perform the wagered action.

Challenge coins again became popular during the Vietnam War when the "challenge-response" was added to the
tradition. Leisure time in Vietnam was a commodity, but when it came, it was utilized to the max; catching up
on sleep; writing letters home; letting off steam at the unit/base bar. The latter provided to be most popular,
but eventually it too could become boring and mundane. To heighten excitement and foster unit esprit de corps,
Bullet Clubs were formed. These were comprised of small, elite, front-line fighters who each carried a
personalized bullet from the weapons they carried in combat. The ultimate use of the bullet, usually carried in
a hip pocket, was to deny the enemy personal capture. When an individual entered the unit/base bar, he would
be challenged by other patrons to produce his bullet. If he did, the challenger would buy him a round. If he
failed to produce his bullet, he bought a drink for person who challenged him.

Eventually, personalized bullets took on disbelieving proportions. Some "teamies" took to carrying 20-,
40-, or 105-mm cannon shells. Clearly, these were not personalized coup de grace munitions but rather
manifestations of perceived individual prowess in combat or - perhaps - on R & R. At the height of the
Bullet Club's heyday, it was not an uncommon sight to see strewn across a barroom table a very respectful
representation of the full range of bullets, rockets, cannon and artillery shells used in Southeast Asia.
In order to gain control of the situation - and to avoid accidental discharge of the large, fully functional
munitions - bullets were traded for coins which reflected the unit's symbol and pride.

"Coining" is a relatively new U.S. military tradition, but has roots in the Roman Empire, where coins were
presented to reward achievements. Coins come in a variety of shapes, sizes, designs or formats. The oldest coin
currently known of was stamped out of copper in the early 1950’s by Col. ‘Buffalo’ Bill Quinn of the 17th
Infantry Brigade during the Korean War.