Tip: Press F2 on the level editor to see subscreen boundaries. This will help you avoid glitching dragon coins by putting them on the subscreen boundaries.
But then you're wasting layer 2 for muncher...
Also when they are sprites you can easily have them move seperately.
And if you know some basic asm you can also make the move differently so something like that is better of as a sprite imo
Only problem with this is that it animates slower than the object Munchers. Anybody that wants it to animate faster (and a bit closer to the original) can change the "LSR #4" to "LSR #3" at line 75.
A neat update to this in the future would be to have it sync up with the original Munchers. Maybe even give it custom behavior when a Silver P-Switch is enabled (the coin GFX routine is actually a JSL so you can probably make that work easily), rather than using the default "turn to silver coin and fall" behavior.
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