Found in a city sewer system most likely. The City of Victoria used to bring dregs like this into my shop when they cleaned out and repaired parts of the system.
Environmental damage - a key date reduced to a hole-filler...
"Discovery follows discovery, each both raising and answering questions, each ending a long search, and each providing the new instruments for a new search." -- J. Robert Oppenheimer
I once played around with nickel electroplating and used a nickel as a sacrificial piece. It came out looking similar so I would say it defiantly looks like a chemical reaction of some kind. Too bad could have been a nice key date.
If you look at the rim (3 and 9 o'clock) where it looks spongy, that would be an indication of a bad nickel casting. However, the "craters" in the middle of the coin do not look like casting porosity. This is most likely some type of corrosion and definitely not a casting.
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