What happened
Friday wasn't a particularly great day for investors in cryptocurrency, but Polkadot (DOT 2.58%) was an exception. The token was up by more than 5% in late afternoon trading thanks to an intriguing move that should bolster its legitimacy and reputation.
So what
Investors were reacting to the formation of the Polkadot Alliance, created by a group of users and developers within that token's community. The Alliance aims to establish a set of ethics regarding the use of Polkadot assets, such as its code and its branding, and provide recognition to people contributing to its development and upkeep.
The group said in what appeared to be an official communication that it aims "to fight the use of uncredited code and misuse of the Polkadot brand in ways that do not bring added value to the ecosystem."
Like numerous cryptocurrencies, Polkadot has a fairly large and active community of developers and users that can get rather passionate about the system. It's a bit of an unusual entity, as its mission is to integrate the functionalities of differing blockchains rather than offer a proprietary and stand-alone system.
Now what
Of course, the Polkadot Alliance so far is little more than a document stating virtuous intent, and the real value will come from its actions. Still, it shows that Polkadot has some true believers who are willing to spend their time and effort burnishing the reputation of their token. As such, the move is inspiring and confidence-building. It bodes well for Polkadot's future, so the resulting investor uptake is entirely understandable.
