If it is incuse, then it is damage. If it is raised, then the discussion can continue. But it looks incuse from here. But if it were a die issue, where are all the other devices that could be on the rest of the fields?
Coop, dropped letters are incuse. I'd say it has some potential, although I think dropped letters are grease and tend to have a gravely look to them on an uncirculated coin. So I am quite unsure what that is, but seems to be something.
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