Just like the other Porifera Phylum species. The Basket Sponge reproduces sexually and asexually. The Basket Sponge Reproduces the same way as all other sponges. Either asexually through budding or sexually when one sponge releases it's sperm into the water and the other sponge collects it and fertilizes. Then it produces a larvae which floats around until it attaches on a solid and then starts to grow.