Sounds like an American Litoral Society tag. That's how they recommend to use their tags. I've tagged many fish for them but never got any tags back.
I don't like the loop style like that. I'm concerned the loop will catch on a rock or wreck.
Other technique people like is to tie a large double or triple overhand knot in one end of the tag and just slip it through the skin so it trails like a Spaghetti tag. The Society doesn't recommend this but it's often done.
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