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 coloured circle with two letters inside.
If a person has not uploaded a profile picture, they will show the coloured circle. The two letters are the first two letters of their user name. For example, this user's nickname is Joe User.
The colour of the circle depends on their subscription level in Paltalk. In the example above, 'Joe User' has a VIP subscription, so the circle is VIP purple.