It's just another shape for a little pocket knife. Very often, they are made by splitting a coin in half and using the two halves as the outside surfaces of the knife. With two small blades, it's not intended as any sort of vicious weapon. It's for opening packages, trimming loose threads, that sort of thing. The same stuff you might carry a balisong for.
The term "butterfly knife" obviously comes from the shape with the blades open. Somehow, "beatle knife" just doesn't sound as attractive.
This particular one is part of a category of knifes known as "advertising specialties." These are generally cheap knives given away at trade shows and so forth to promote a business or company. Today, most businesses use pens or keychain fobs or something more politically correct then a pocket knife. I used to date a woman who worked in the marketing department for a company that sold advertising specialties. I kidded her about selling sales, marketing marketing, and advertising advertising. They could print your company logo on all sorts of stuff: golf balls, pens, watches, etc. Somewhere, I have a cheap SAK knockoff with their logo printed on it.
One of the prized corners of my balisong collection are advertising specialty balisongs. I'm planning a major vault exhibit of some of these pieces. You'll be surprized how balisong have not always been seen as an evil weapon but used to be given away a promotional gifts by respectible companies.
I suspect that the sides of the piece in question in this auction are celluloid. If you haven't read Professor Roland Phlip's lecture on celluloid, find it on my site.
Keep thinking W!.
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Chuck
Balisongs -- because it don't mean a thing if it ain't got that swing!
http://www.balisongcollector.com