What is a leather loop for on a crop?

My brother is convinced that the leather loop near the base of the handle on a crop (whip for use on a horse's shoulder and behind your leg) is so that you don't drop it... It's for hanging it up in a tack room, right? It's actually dangerous to have your hand through the loop because it might get caught somewhere on the saddle, and it will restrict your hand movement, and if you fall off you can injure your arm/hand if your hand is through the loop.