Is not designed to "punch a hole". Could be used for threading leather laces through an existing hole. However, it might also be that I'm totally wrong....AGAIN! ...but I'm so GOOD at it!!
It's for cutting the "eyes" out of potatoes, then you plant the "eye" and get a new plant. Sometimes they just cut up the potato into chunks with an "eye" in each chunk, but then you waste a perfectly edible spud.
I still think it's meant for threading (meaning to push the string through its subject medium) some sort of string (leather or ??) or possibly even poly tubing.