wavee.com a scam?

Found a link to an auction site called wavee.com.

I took a look at it today and the site seems pretty legit and there are, at what first appears to be, some amazing deals like 13.3" Macbooks selling for $70, Nokia N900 unlocked phones for $7.00. I couldn't believe what I was seeing. How could this company be making any money? Now I figured it out.

First off here's how the auctions work:

The items are listed on the site for 48 hours and start at $0.00.
Each bid puts the price up by 1 cent.
When the auction gets down to 20 seconds left and somebody bids again, the countdown goes back to 20 seconds.

Here's how they're making their money:
Each bid costs 75 cents. That's the profit!

As an example, if a Macbook goes for (to make the math easier) $100 that is 10,000 bids at $0.75 each! That's $7500 for the company. Nice profit.

They do auction off bid packages with more bidding credits that seem to go for pretty cheap but again the company is already making money on the packages when they sell them.

It also looks like the same group of people always win the auctions so I think if you didn't get in on day one with this site you're pretty much screwed. I'd say stay away from this site.

Has anybody here had any luck with wavee.com?

UPDATE: Been thinking about it and actually it's not that bad. For example, I just watched a Nokia N900 go for about $5.00US. So that's basically $375 for bidding for the company plus $5 for the item and $7 for shipping. Now if there was 4 people who bid on the item and they each bid an equal amount of times the item only cost the winner $93.75 bidding +$12 for the item with shipping. Not a bad deal. Although it's gotta suck for those people who didn't win and spent $94 each just for the privilege of bidding. I'll keep my eye on it.