Torn over to call this a scam.  They haven't actually lied. Yet.  I don't think there is any gold now. If they actually want to get rich and not just go crazy for a couple weeks with Albanian whores and cheap booze in Bulgaria then they'll take all that LiteCoin and convert into gold and follow the plan in the OP.

Unfortunately most altcoin scammers go for the quick buck and vanish, i.e. there will soon be some Albanian whores who can't sit down for a week.

I think their idea is great; if they scam out I hope some other group of devs takes the concept and goes big with it.

It always seems like the best altcoin ideas get posted up to BTC by crooks because real devs are too cautious or lack the imagination to try new stuff.