Crowdstatus is made up of crowds, each crowd contains people and each person in the crowd has a status. This means that you can see what everyones current status is in a crowd. Think of crowdstatus as a twitter group.
CrowdStatus is very much in the beginning stage now. The site states that, they are definitely in Alpha. At present, the site works only with Twitter and you can add people to your crowd only if they have a Twitter account. CrowdStatus is created by Darren Stuart. He has stated that this is a personal project till now and not to ask about any business models. (Hence an inference can be made, that the project is very much in the beginning stage and more updates can be expected in the near future.) Users can also request features to be added to the site.
A very interesting and innovative startup! A definite high five!
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