Auroracoin is a pump and dump. Crypto currencies are illegal in Iceland (http://en.wikipedia.org/wiki/Legality_of_Bitcoins_by_country) and on top of that how do you imagine, a person or a group of people not affilitated with a government to have access to the required infrastructure to actually spread the coins among citizens? You need means of verification and authorization of every single person.

Even if crypto currencies were legal in Iceland how do you imagine donating money to people for free? You can't giveaway money to people for free without the government wanting taxes from it. It's no such simple feat.

The biggest misconception is that the coin is somehow tied with the Icelandic government where in reality it isn't. It makes such claims on the official page but this is false.