On Friday, the anonymous messaging app NGL announced its acquisition by Mode Mobile, a company known for its smartphone rewards system that monetizes user engagement through a barrage of advertisements.
Controversial Journey of NGL
NGL made a notable entrance into the App Store in late 2021, quickly ascending the charts and joining a cadre of similar applications that have captured the attention of teenagers by facilitating anonymous messaging. However, the app’s journey has been marred by controversy since its inception.
Anonymous messaging platforms often face scrutiny for their potential to foster bullying among young users. This concern was underscored when Snapchat took action in 2022, banning third-party apps like NGL, LMK, Sendit, and YOLO following a lawsuit from a parent who alleged that such platforms contributed to her teenage son’s tragic suicide.
NGL itself has been criticized for employing questionable growth hacking strategies. Reports surfaced of the app sending automated messages that masqueraded as genuine communications from real users, misleading individuals into believing they were receiving authentic interactions. This led some users to unwittingly subscribe to a .99 monthly plan for insights into the identities behind these fabricated messages.
In 2024, after a comprehensive two-year investigation, the Federal Trade Commission (FTC) intervened, announcing a ban on NGL’s availability to minors. This marked one of the agency’s most significant efforts to safeguard young users from detrimental social media experiences.
The FTC’s statement highlighted the app’s deceptive practices, noting, “NGL’s bait-and-switch tactic prompted many consumers to complain, which NGL executives laughed off, dismissing such users as ‘suckers.’” As a result, NGL faced a million fine and complied with the FTC’s directives.
With the departure of co-founders Raj Vir and João Figueiredo, as reported by Business Insider, the remaining three employees of NGL will transition to roles within Mode Mobile.
A New Chapter with Mode Mobile
Given NGL’s history of dubious growth tactics, this acquisition by Mode Mobile appears to be a fitting alignment. Mode Mobile has developed a smartphone known as the “EarnPhone,” which boasts “built-in earning features.” The company promotes the idea that users can earn money by engaging in everyday activities such as listening to music, playing games, and browsing the internet.
According to Mode Mobile’s investor materials, the company generates revenue through partnerships with digital advertising firms that pay for user attention and engagement. While users may find their devices inundated with advertisements, there’s a potential upside: enough earnings to cover a round of drinks at a local bar.
The specific terms of the acquisition remain undisclosed, leaving industry observers curious about the future trajectory of both NGL and Mode Mobile in the evolving landscape of digital communication and rewards-based applications.
