Anonymous messaging app NGL has been acquired by ‘EarnPhone’ Mobile startup mode

Anonymous messaging app NGL announced on Friday that it has been acquired by Mode Mobile, a smartphone rewards company that makes money by bombarding its users with ads.

NGL quickly rose to the App Store charts after its launch in late 2021, joining a host of similar apps popular among teens 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 a problem 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 has also come under fire for its questionable growth hacking methods, such as sending fake messages to users that appeared to be from real people but were automated by the app. Some users were tricked into paying a $9.99 monthly subscription to get hints about who sent 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 radical interventions to protect minors from harmful social media experiences.

“NGL’s bait-and-switch tactic led many consumers to file a complaint, which NGL executives mocked, calling these users ‘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 co-founders, Raj Veer and Joao Figueiredo, will move on from the app, according to Business Insider. The remaining three app employees will work for Mode Mobile.

Given NGL’s track record of questionable growth hacking, this partnership with Mode Mobile seems like a good match.

Mode Mobile makes a smartphone, dubbed the “EarnPhone,” which has “built-in earning features.” The company claims that users can earn money by performing everyday tasks on their phones, such as listening to music, playing games, and browsing the web. According to the company’s investor materials, Mode Mobile generates revenue from “digital advertising partners” who “pay for 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 bar.

Terms of the sale were not disclosed.