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Probably true, though the protocol is open source and can federate, so potentially has a lower blast radius next time as people can just bail to other ATProto servers.
Are there any other ATProto servers? Can you bail to those today?
Not yet, at least not officially. I believe some people have tried out the open source code, but I'm not aware of anything active right now.
They say at the end of the month, but we all know how trustworthy those promises are.