Some sponges can have some pretty potent toxic defenses so keep aneye on it. They can also quickly overgrow their competition and smother it to death. However, most sponges do not. If it were me, I would just keep a wary eye on it, but let it live; it's a pretty cool sponge if you ask me. As mentioned, the coral will probably just grow in another direction. Keep an eye out for necrotic tissue on the polyps near the sponge.
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