Does monster (multi-colored) toning only...

Does monster (multi-colored rainbow like) toning only happen on fresh uncirculated surfaces still having full luster or can it also happen to a circulated coin that's later removed from circulation.
It's the "hunt" that makes this such a great hobby...
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just sold at a local coin club a common date circ...... graded fine merc dime that had rainbow rim toning on both sides real rainbow for a buck
sincerely michael