Hacking and cyber attacks: Cryptocurrency exchanges and wallets can be vulnerable to hacking and cyber attacks, which can result in the theft of large amounts of cryptocurrency.
Lack of liquidity: Some cryptocurrencies may have limited trading volumes and liquidity, making it difficult to buy or sell them quickly and at a fair price.
Limited adoption: Despite the growing popularity of cryptocurrency, its adoption is still limited, which could limit its long-term potential as an investment
Blockchain security firm CertiK first reported the flash loan attack on the platform through a tweet on Feb.16, along with the alleged attacker’s contract address.
Nearly $8.5 million was moved from the protocol, and as a result, the Platypus USD (USP) stablecoin depegged from the U.S. dollar, dropping to $0.33 at the time of writing.