Yes it is. See "Expect a 6 month freeze on Facebook’s Instagram acquisition" http://news.ycombinator.com/item?id=3965961

Looks like filters are already baked-in.

From the link: "It's also easy to edit photos with new tools like the ability to crop, rotate and add filters to any picture in your camera roll."

It seems like this is made by the team formerly known as Sofa. Both the person who posted it and the name in the screenshot used to work there.

There are filters + ability to crop and rotate it seems.