Anonymous App NGL Acquired by Mode Mobile’s EarnPhone
▼ Summary
– The anonymous messaging app NGL has been acquired by Mode Mobile, a smartphone rewards company that generates revenue by showing users a high volume of ads.
– NGL gained rapid popularity among teens after its 2021 launch but faced significant controversy over its potential to enable bullying and its deceptive growth tactics.
– The FTC banned NGL from offering its app to minors in 2024 and fined it $5 million for using fake messages to trick users into paying subscriptions.
– NGL’s founders are leaving the company, and its remaining employees will join Mode Mobile, a firm whose ad-heavy business model is noted as a fitting match for NGL’s history.
– Mode Mobile’s primary product is an “EarnPhone” that claims users can earn small amounts of money by performing tasks, but it floods the device with ads from its advertising partners.
The anonymous messaging platform NGL has been purchased by Mode Mobile, the company behind the ad-centric “EarnPhone.” This acquisition marks a significant shift for NGL, an app that skyrocketed to popularity among teenagers shortly after its 2021 debut but quickly became mired in controversy and regulatory scrutiny. The app’s core function, allowing users to send and receive anonymous questions, placed it within a category of services repeatedly criticized for enabling online bullying.
The app’s entire history has been fraught with significant controversy. Similar platforms were banned from Snapchat in 2022 following a lawsuit linking anonymous apps to a teenager’s suicide. NGL itself faced intense backlash for its business practices, most notably for using automated bots to send fake messages that appeared to come from real friends. This tactic was designed to create engagement and enticed many users into paying a $9.99 monthly subscription for hints about their anonymous senders, hints that were ultimately worthless because the messages were fabricated.
Regulatory action followed these revelations. After a lengthy investigation, the Federal Trade Commission announced a sweeping settlement with NGL in 2024. The agency banned the app from being offered to minors and imposed a $5 million fine, citing a “bait-and-switch” scheme that company executives had reportedly laughed off in private, calling complaining users “suckers.” Following the settlement, NGL’s founders are departing the company, with its few remaining staff joining Mode Mobile.
The partnership with Mode Mobile appears to be a logical, if concerning, alignment of business models. Mode Mobile’s primary product is a smartphone that promises users can earn money by performing simple tasks like playing games or browsing the web. This revenue is generated by saturating the device with advertisements from digital partners. In essence, the EarnPhone monetizes user attention through a constant stream of ads, offering small financial incentives in return. The acquisition of NGL, with its history of aggressive user engagement tactics, suggests a shared focus on maximizing attention and ad exposure, though the financial terms of the deal remain undisclosed.
(Source: TechCrunch)