I 2nd that - yellow sponge (not photosynthetic). i think hermit crabs may eat it - not that i have seen that happen, but something must, because it stays in hard to access undersides and crevices in my tank. I never considered it a pest - just part of the healthy reef fauna.
however - from cleaning algae\dipping new corals I have found that a squirt of peroxide (3% H2O2) will kill it quick.