I don't think it's a scam, I actually think it's genius. If these snakes are really given away, how is it a scam? A scam is someone who robs you of your money by pretending to offer something you want. If you read the FAQ and how it works you fully understand everything. I can't guarantee that a lot of those auctions won't make it to retial price and that not even the buyer will spend that in bidding points. If you setup a system to know exactly how much you're spending each bid, you can come out winning.
And props to the guy who's doing it all. While the bidder may end up paying $5.35 for a snake, he made .55 x 535. Whose fault is that? The bidders. Nothing illegal there. So if you're going to get all pissy for paying $5.35 for a snake while the guy giving it to you made approx $270 off everyone bidding, then you're just a hater for not thinking of it first. Because I'll tell you what, if I would have thought of this first, I would have done it too.
Good point, that's why you shouldn't start bidding until the end! If people blow their money in the beginning then that's on them. I understand the concept.