It's an interesting ploy, but the success is going to be based entirely on what type of beta tester you're trying to attract.
Personally, as an introverted tech, I'd be interested in signing up, poking around, and filing bug reports, but requiring me to spam my friends list for an invite isn't something I'm willing to do.
I thought the same thing at first...but then realize they're not asking you to tell your friends before you get an invite. They're asking after you've already signed up.
Seems like a good way to "price" access to the beta at an amount people are willing to "spend."
For me personally I wouldn't share things with my friends that are an unknown quality unless they themselves traffic in things that are of an unknown quality. Most of the people on my friend's list are not interested in beta testing.
The number of people who pick '12345' or 'password' is astronomical. And forcing them to remember a "strict" password is more detrimental to the user experience than just having a user/password combination.
Besides, what are you going to do if you get dupes? "Sorry, that password is already in use"?
Checking out the site, it's actually pretty impressive. Not in the well-designed sense, but in the having-an-actual-product sense (even if it's, you know, a blatant ripoff of the sites he listed...http://www.globalcommunity.me/blog/ feels like it takes the cake in that regard). I'm curious about where he got his funding from.
Edit: The alt-text for his "Blog" image is literally 'scritter'. My co-workers are giving me funny looks.
That's actually a free icon from a Twitter icon pack. I've seen it in a few roundups. Nice that he's using a creative commons artistic twitter rendition icon as his mascot.
He's just cobbling together existing software. The auction is a default skin of PHPProBid.
I don't recognize the other sections, but none of them have the same look and feel (other than the logo...which is still a stretch). I think it's safe to say each section is just white-labeled software someone else created.
I think that's specifically why people will still be using routers. Nowadays, most single computers still are sitting behind routers, despite the fact that they don't actually "need" to, specifically for the firewall protection. It's a lot easier to plug into a router and forget it than it is to have to deal with setting up a firewall every time you reinstall your OS.
If we're talking about a box that primarily performs firewalling, let's call it a "firewall" instead of a "router". (Although as I said above, routing is still necessary in IPv6.)