So I found this one too and I want to presume it is also a strike through error. It is missing letters on the obverse side. UN in United and the e in God We Trust. On the reverse NE in New Jersey and at the 6 o'clock position it's missing alot of the lettering. I don't think it's normal wear but is it possible it was Struck Through Grease like the 1979 Washington quarter I posted earlier?
The incuse marks on your coin remind me of contact marks. Notice how the are more in a straight line? A glancing blow to the coin. On struck through things on coins, they tend to had a definite start and stop area. Rounded or shape like something that caused the error to be struck onto the coin. On wire you can see the rounded lower area on the struck though. Also they tend to not be raised up on the edges like a PSD would cause a displacement of metal. The die keeps that from happening. Note the curved line instead of being straight. Something was on the die when the coin was struck. Again note that the metal was not displaced and rounded upwards even with the staple still in the coin. PSD make a tranche and a raised area on each side of the event. Note the distinct ends on the struck though area. No swell caused by the wire was the die prevent that from happening.
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