No your eyes are not playing tricks on you, and what you read above will be further confirmed by what you see below. Dildos that eject an alien egg for those people who have a fetish for being impregnated by aliens or insects, you know the kind? Everyone knows a couple of people like that right? Wrong, I must admit I think this is a highly specific fetish that will make the majority of hardened sex toys cringe at least a little bit.
This sex toy or rather hollow rubber flexible dildo is produced by Primal Hardwere and known as the Splorge but the group of toys are known as Ovipositors. The company also makes tentacle sex toys and even a cactus dildo!
The video caption states:
The eggs used in this video are made from plain gelatin (NOT JELLO!!!) and lubed with J-lube. We used 2oz gelatin in 1 1/2 cups of water to make six eggs. Sprinkle the gelatin into the cold water and let sit for 10-20 minutes. Slowly heat and stir until it is all dissolved, then pour it in the mold. Refrigerate several hours to set.
You can see an interview on Vice with the creator of this line of new and outrageously weird sex toys.