Here is a small & short keychain made from a decorated nylon strap.
This tough woven 'fabric' has had a patch of other fabric sewn to it. The embroidered part has a big "S" made of colored stitches, a Sonic face outline in blue & Segasonic 1991 written on it, along with the copyright & Sega logo. It is folded over the D-ring attachment for the key clip & set with a permenent metal button. It's a nice way to make a sturdy & durable but 'soft' accessory for key holding. Here, you can see it new still in the clear packaging. Was this a UFO machine prize?