Anonymous NGL messaging app was announced on Friday that it was 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 its launch in late 2021, joining a group of similar apps popular with 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 teens — 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 the developer’s shady hacking tactics, such as sending fake messages to users that looked like they were from real people but were actually automated by the app. Some users were duped into paying a monthly subscription of $9.99 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 interventions to protect minors from harmful social media experiences.
“NGL’s bait-and-switch tactic prompted many consumers to complain, which NGL executives laughed off, dismissing these users as ‘cuckolds,'” 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 leaving the app, according to Business Insider. The remaining three app employees will work for Mode Mobile.
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Given NGL’s history of dubious development hacking, this partnership with Mode Mobile seems like a good fit.
Mobile Mode is making a smartphone, which it calls the “EarnPhone,” that has “built-in earning capabilities.” The company claims that users can earn money by performing everyday tasks on their phone, such as listening to music, playing games and browsing the web. According to the company data investor materialsMode Mobile generates revenue from “digital advertising partners” that “drive user attention and engagement.” Basically, your phone is constantly bombarded with ads, but you might make enough money to buy a round of beers at a dive bar.
Terms of the sale were not disclosed.
