Anonymous messaging app NGL announced Friday that it has been acquired by Mode Mobile, a smartphone rewards company that makes money by flooding its users with ads.
NGL quickly climbed the App Store charts after launching in late 2021, joining a group of similar apps popular among teenagers that allow users to send and receive anonymous questions and messages. But it has been embroiled in controversy for most of its existence.
Anonymous messaging apps are problematic because they can encourage bullying among teenagers — Snapchat banned third-party apps like NGL, LMK, Sendit and YOLO from its platform in 2022 after a parent sued the company for its alleged role in her teenage son’s suicide.
NGL also came under fire for its shady growth hacking tactics, like sending fake messages to users that looked like they were from real people but were actually automated by the app. Some users were tricked into paying a $9.99 monthly subscription to get hints about who sent the messages, which were fake.
After a two-year investigation, the FTC announced in 2024 that it would ban NGL from offering its app to minors — one of its most drastic measures to protect minors from harmful experiences on social media.
“NGL’s bait-and-switch tactics prompted many consumers to complain, which NGL executives laughed off and dismissed such users as ‘suckers,'” the FTC said in a statement at the time. NGL paid a $5 million fine to the FTC and complied with its demands.
NGL’s two founders, Raj Vir and João Figueiredo, are moving on from the app, according to Business Insider. The remaining three employees in the app will work for Mode Mobile.
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Given NGL’s track record of questionable growth hacking, this partnership with Mode Mobile seems like a good match.
Mode Mobile makes a smartphone it calls the “EarnPhone” that has “built-in earning features.” The company claims that users can earn money by doing everyday tasks on their phone, like listening to music, playing games and surfing the web. According to the company’s investor material, Mode Mobile generates revenue from “digital advertising partners” that “pay for user attention and engagement.” Basically, your phone is constantly flooded with ads, but you might make enough money to buy a round of beers at a dive bar.
The terms of the sale were not disclosed.