As this continues to grow and I'm still unsure what it is I continue to search. This seems close, could it be maybe be a different strain? Under blue lighting it has an orange glow to it but my camera doesn't do that any justice.
@fishguy242@Capt'n I think it is to early in its development to tell exactly what species it is. Your thought of Nemastoma may be correct. But given the abundance and types of gracilaria algae in the hobby I might lean towards Hayi or Curtissae.
There are a couple other potential possibilities but I'd lean there. Let's see what it looks like when it grows out a little. Tag me back in then and I should be able to help identify.