Can someone explain more how this works? This seems like its a ponzi or something??? Confused..

Essentially you buy shares in a farm, you can mine LTC, VTC or DRK.
You can purchase QShares or Farmshares, by default they mine LTC.
If you buy what's called a Mod Pack, you can then mine DRK or VTC, by using some of those shares.
That's it in a nutshell, poke around the website and the rest should fall into place.