Mode Mobile Acquires Anonymous Messaging App NGL

The anonymous messaging service NGL has been acquired by Mode Mobile, a company recognized for its “EarnPhone” rewards platform. The announcement, made this past Friday, marks a significant shift for the controversial app that gained rapid popularity among teenagers following its 2021 debut.

A History of Controversy

While NGL climbed the App Store rankings quickly, its tenure was defined by persistent scrutiny. Like other anonymous messaging tools, the platform faced criticism for potentially facilitating teen bullying. This led to broader industry repercussions; in 2022, Snapchat removed third-party integrations for apps such as NGL, LMK, Sendit, and YOLO following a lawsuit that linked these services to the suicide of a teenager.

Beyond safety concerns, the app faced intense backlash regarding its business practices:

• Deceptive Growth Tactics: NGL was accused of using automated messages that appeared to come from real users to drive engagement.
• Subscription Traps: Users were often prompted to pay a $9.99 monthly fee for “hints” regarding the identity of anonymous senders—identities that were frequently fake.
• FTC Sanctions: In 2024, following a two-year investigation, the Federal Trade Commission (FTC) prohibited NGL from serving minors.

The FTC’s intervention was severe, with regulators noting that NGL executives allegedly mocked user complaints, referring to customers as “suckers.” The company ultimately paid a $5 million fine to settle the FTC’s claims.

Leadership Changes and Future Strategy

Following the acquisition, NGL’s co-founders, Raj Vir and João Figueiredo, are departing the project. The remaining three staff members from the NGL team will transition to employment at Mode Mobile. Financial terms surrounding the purchase agreement remain undisclosed.

The acquisition aligns with Mode Mobile’s business model. The company produces the “EarnPhone,” a device that provides users with minor financial rewards for performing digital tasks, such as gaming, streaming music, or browsing the web. According to company investor materials, the primary revenue stream for Mode Mobile involves selling user attention and engagement to digital advertising partners, resulting in a device experience heavily saturated with ads.

As NGL integrates into the Mode Mobile ecosystem, industry observers note that the pairing of a platform known for aggressive growth tactics and a company built on ad-revenue-driven user engagement reflects a distinct shift in the app’s operational direction.