Firstly, they have partnered with a telecom[1], which means they get bandwidth at vastly reduced rates.
Secondly, their prices are roughly 1/3 more than what you'd pay elsewhere for a year of hosting[2]. If they already have paid for infrastructure (which it says they have), selling off underutilized servers quickly like this isn't a bad way to get cash.
Thirdly, I'm sure they have done the math, and can guess how many of these VPSs will be basically unused. If they are already paying to keep the servers running, most of the extra VPSs have negligible influence on their costs.
I wouldn't rely on it for something you expect to be around for ever, but it's probably not an outright scam.
Firstly, they have partnered with a telecom[1], which means they get bandwidth at vastly reduced rates.
Secondly, their prices are roughly 1/3 more than what you'd pay elsewhere for a year of hosting[2]. If they already have paid for infrastructure (which it says they have), selling off underutilized servers quickly like this isn't a bad way to get cash.
Thirdly, I'm sure they have done the math, and can guess how many of these VPSs will be basically unused. If they are already paying to keep the servers running, most of the extra VPSs have negligible influence on their costs.
I wouldn't rely on it for something you expect to be around for ever, but it's probably not an outright scam.
[1] http://www.fibernetics.ca/
[2] http://lowendbox.com/