What is coming out of my anemone?

Not a whole lot. I slowed down the feeding in my tank due to a algae problem and the recommendations of the forum. I am feeding my fish pallets once a day and once a week I add "Reef Zoo Plankton" a liquid coral growth food. I have tried giving him very small pieces of scallops weeks ago but he did not seem to eat it.
 
Looks like a ribbon of leftover food... basically poop.

They do not spread egg/zygotes that way.
 
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