From what I've heard, people gave up at the waitlist. The unit economics do not make sense either: the CEO said that they break even overall, which is unsustainable when you consider cost of human capital/oppertunity cost. http://techcrunch.com/2015/02/27/catch-a-tiger-by-the-toe/
However, from their Twitter account, Magic is apparently not dead. https://twitter.com/tweetmagicnow