I've got one of those as well. I find them very attractive.
I imagine they were minted because Germany was part of the Latin Monetary Union at the time, and fellow members France and Belgium already had similar-sized 25-centime coins, although the Belgian ones had a central hole.
I also like the design of these 25 Pfennig coins, in particular because it is so different from the style of all other German Empire coins. However, these coins were very unpopular among the German population because the denomination was new and people thought it would be redundant.
In the first years of WW1 these coins then were started to be withdrawn from circulation because the material was needed in the arms industry.
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