This is going to be dismissed as trolling but this is actually a very well known scam that has been performed for hundreds of years. You trick a load of people into "investing" in a race horse, which isn't really a race horse at all. It looses and you keep all the money. Somebody ported it over to Bitcoin and it worked. The people that invested aren't even mad as they don't realize they were scammed.
Sounds about right to me.
I'm not sure if it was an advertisement stunt or a scam. Did they raise more than the starters fee + 200$? If so, I would vote for scam :)