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for sure. try using just the word challenge in what the font and maybe spread them apart just a tounch to simulate a little more kerning and see if that helps the what the font systems identify it.
yup..it is a font but stylised to make it look unique....one can try this with any kind of bold graffiti kind of fonts.....i did many such for making logos...prints...
its easy and fun too...you try making some and end up in many of them...
best way to re-create would be to actually trace it. us the pen tool in illustrator and take your time.. the live trace feature is nice to start with but with something that dirty you'll definitely have to do allot of fine tuning.
as far as the font style...honestly you could create that font style pretty easy using come calligraphy...
Its a customer of ine and he wants it silkscreened on a couple of shirts. Should i trace it from the outside?
If you have the image has High Res you can separate in as bitmap in Corel in about 5 minutes I have a tutorial that shows hows to do this on my site...
advancedartist.com/bitmapsepstut.html
If you dont have a high res image you can try upsampling the image which I believe would work with the image i see here...
Take the image into PhotoPaint and go to image/resample and then up the resolution to something like 600 or 800 DPI and then try the method in the tutorial. It should work...