Sometimes the FUGLIEST creatures on Earth are also some of the smallest. This guy is small and seriously fugly. The cup moth caterpillar, while beautifully colored, is definitely appearance challenged overall. Perhaps that is why it hides its head on the underside inside some serious folds of tissue.
Those colors are a warning not to touch. They can sting quite painfully. They are vegetarians and prefer to start by skeletonizing the leaves. Left unchecked, these tiny things can cause serious defoliation of palm trees.