Start wrapping bits of Japense masking tape around the rope every inch or so.
Continue for a few feet.
Pinch the end and add a little bit of glue to hold the sides together every inch or so.
Continue wrapping around and adding glue every inch or so.
Continue wrapping to the end (a bit wider than a mug)
Add a bit of Japanese masking tape onto the end and glue the end to the rope. Let dry and now you've got a place to put your mug!