You might have seen ads everywherer on the web saying - iphones for $3, ipads for $10 etc..

There already 100s of them. Beware of these penny auction sites. These are not your regular auction sites like ebay or ubid.

Here you need to buy bids in advance like for $0.60 and you use your credits for each bid you submit!
In spite you win or lose, your used credits are gone. Bid increments are preset.
Also the auction does not end at a mentioned time - every time you bid you extend the clock

It is more like a lottery, many people by lottery ticket and only one wins.

some poeple consider this as a scam..