I don't feel that this solves anything that a label + placeholder could accomplish in this demo. The space for the floating label is available the entire life of the form - before, during and after field focus. I just think that this solution is just putting lipstick on the pig of the issue via animations.
Sometimes a little lipstick massively increases form conversions. The more minimal and inviting the form looks, the less imposing it feels to the user.
