Anonymous messaging app NGL was acquired by ‘EarnPhone’ startup Mode Mobile

NGL, an anonymous messaging platform, revealed on Friday that it has been acquired by Mode Mobile, a startup focused on smartphone rewards. Mode Mobile generates its revenue through advertising, frequently inundating users with promotional content. Since its launch in late 2021, NGL swiftly rose through the App Store rankings, joining a wave of similar apps that cater to teenagers by allowing users to exchange anonymous messages and questions. However, the app's popularity has been marred by significant controversies. Critics point out that such anonymous platforms can foster a toxic environment, particularly for younger users. In response to concerns over bullying related to these apps, Snapchat took action in 2022 by banning third-party applications like NGL after a tragic incident linked to one of its users. NGL faced scrutiny not only for its impact on mental health but also for its questionable growth tactics. Reports indicated that the app employed deceptive strategies, such as sending automated messages that resembled real user interactions. Some individuals unknowingly subscribed to a $9.99 monthly service to reveal the identities behind these misleading messages, which were, in reality, fabricated. Following a thorough investigation, the Federal Trade Commission (FTC) announced in 2024 that NGL would be prohibited from providing its services to minors, marking a significant regulatory step aimed at safeguarding youth from harmful online experiences. The FTC's statement highlighted the app's manipulative practices and noted that NGL executives had dismissed user complaints as trivial. Consequently, NGL agreed to pay a $5 million fine and comply with the FTC's directives. As part of the transition, NGL's founders, Raj Vir and João Figueiredo, are stepping away from the app, while the remaining employees will join Mode Mobile. Given NGL's controversial history, its merger with Mode Mobile, which offers the “EarnPhone” featuring built-in earning functionalities, appears to be a fitting alliance. Mode Mobile claims users can earn rewards through everyday activities such as listening to music and browsing the web, albeit while being bombarded with advertisements. The specific financial details of the acquisition remain undisclosed.