The development of online literature had faced many problems. Some of the main problems were: 1. Loss of literary value: Many online literature works lack the literary value of traditional literature works, such as depth, ideology, artistry, etc. They often only pursue the success of traffic and commerce and lack real literary value. 2. Uneven quality of content: The main creators of online literature are usually young web novelists. Their writing level, literary attainment, and creative style are uneven. In addition, the audience of online literature was also unstable, and the quality of the works was difficult to be widely recognized. 3. The problem of plagiarism and copyright violation: Plundering and copyright violation often occur in online literature. Some networks and the theft of other people's works to obtain benefits not only damage the intellectual property rights of the original author but also affect the overall image of online literature. 4. The problem of cultural identity: Online literature often involves sensitive topics such as race, gender, politics, etc. Some readers may be critical of its content, which raises the problem of cultural identity. 5. The business model is too singular: The business model of online literature is often through advertising, membership and other means to obtain profits. There is a lack of new business opportunities and profit models. The existence of these problems makes the development of online literature face challenges and opportunities. It requires the network, literature institutions, readers and supervision departments to work together to promote the healthy development of online literature.