I am a bit suspicious about this auction site

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Do you heard about Ubid? I ran into this auction by a co - worker who recommended me to check out some cheap stuff on redtag. And regtag also associated with Ubid; that is how I knew about this website. After I attempted to bid on several electronic items, I felt a bit suspicious about this website. Because some of those items were started with $1.00 base price, then people start bidding on $3.00 each time increment. Once I bid with a price of $10, somebody from nowhere bid it with $100, then from there, each time people have to add $5 increment on each bid. The same scenario on every other items I bid on too. I meant it was just look fishy to me, some people from nowhere all of sudden jack up the bidding price at least 10 times, that just not sound right to me. If they don't want to sell the item too cheap, why not start the base price from somewhere between $50 to $80? Have anyone try this auction site before? What is your review on it?