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I swear its a 1877 Shield nickel.
COINS MAKE CENTS
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I really think it might be..... the date looks good, the 5 looks good, right design.
This was in a group of tokens I got in and it made me laugh so figured I would share.
Dont know why it was done but its funny, I think at least.

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I like the use of the oldtimey ‘5’ punch
30+ years coin shop experience (ret.) Coins, bullion, currency, scrap & interesting folks. Loved every minute!
Isn't this sort of a poor man's Racketeer Nickel?
Its something that's for sure. Maybe a "rackatwo" nickel?
HAPPY COLLECTING
COOL! An impaired proof that looks terrific!
If a picture wasn't going very well I'd put a puppy dog in it, always a mongrel, you know, never one of the full bred puppies. And then I'd put a bandage on its foot... I liked it when I did it, but now I'm sick of it.
Norman Rockwell
Looks like a great candidate for an EBay auction.
An interesting item. Seems it would have been cheaper and easier to alter a Shield nickel instead.
Wonder if someone drilled out the hole in an album to make the larger 2c piece fill the hole.
"To Be Esteemed Be Useful" - 1792 Birch Cent --- "I personally think we developed language because of our deep need to complain." - Lily Tomlin
Depending on when it was done, it may have actually been 3 cents cheaper to use the two cent.