Yep, this is a vary badly beat-up version of the British War Medal. And no, it was never intended to be used as money. The War medal, if the specs given on the
ebay page are correct, was heavier than a crown. Unlike Spanish-American "proclamation coins", British war medals were not struck to coinage standards of size, weight and fineness. You could therefore sell them, or pawn them. But not spend them.
Given the damage this one has received, it could well have been metal detecting find. The hole looks unprofessionally applied - I suspect the soldier "remounted" it himself on a piece of string or some such, which subsequently broke.
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis