Well given Elon's continuing shenanigans at Twitter that moment is probably still ongoing, and the competition is still wide open.
I do think Bluesky may have chose the wrong launch strategy by using the old and tired invite-only method. But hard to say for sure. If they had fully opened to the public last year or the year before, they might have gotten a large influx of users, who would then complain that it doesn't have all the bells and whistles of Twitter, which had 10+ years to develop them. So who knows. At least with invites, they made sure to get people who really wanted to be there, even if it was a smaller crowd.
I do think Bluesky may have chose the wrong launch strategy by using the old and tired invite-only method. But hard to say for sure. If they had fully opened to the public last year or the year before, they might have gotten a large influx of users, who would then complain that it doesn't have all the bells and whistles of Twitter, which had 10+ years to develop them. So who knows. At least with invites, they made sure to get people who really wanted to be there, even if it was a smaller crowd.