sponge is good
but when it impedes corals like it's doing to your torch it can suffocate them in time as they grow sorta fast
so I would cut it off , if you can just slit the sponge while its submerged and just unwrap it from the base of your torch re-home the sponge somewhere in the tank it's less likely going to get mixed up with corals,
as long as the sponge don't hit the air it will live