When you add pals or visit chat rooms you will notice that some users do not have a picture or thumbnail of themselves next to their name. Instead they show a colored circle with two letters inside.
If a person has not uploaded a profile picture, they will show the colored circle. The two letters are the first two letters of their nickname.
The color of the circle depends on their subscription level in Paltalk.
Nicknames also show in these colors on your pal list, in the group participant list, and in text chat, according to their subscription level.