It has diebreaks on the reverse, as well as a double-cut fraction bar, the big lump on top of the D in United, none of which appear on a genuine S-161. The filled A in STATES is laughable. There are some coins in holders, such as a particular 1806 C-1 Half Cent, which are well-known to be fake and in 3PG holders
I agree this coin looks strange. But corrosion sure can do a lot to change a coin's appearance. I think this deserves a second look, but nothing screams counterfeit.
The chin is not a Draped Bust large cent device; it's been totally re-engraved in the die. The left ribbon end has a big bite taken out of it, and there is a die break seen from the D of United, across the two leaf tops, and then to the berry, with s a matching break under it. Neither are found in any die state on a genuine 1798 S-161
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