IIRC at the time imgur launched, all of the other free image sharing websites were pretty bad. Reddit itself didn't start allowing uploads until long after imgur.
Correct. ImageShack was the most widely used host on reddit and had recently disabled hotlinking (after nearly a year of ad bloat on their main site) so user MrGrim on reddit created Imgur and announced it on Reddit 12 years ago:
Holy crap, I have not thought about imageshack for a decade. It was hot garbage: slow, ad ridden and if I recall correctly they would disable your hotlinked images if they used too much bandwidth. Imgur was something of a godsend at the time. Now it's commodity unfortunately.
I remember when ImageShack was the best of all the bad options. TinyPic and PhotoBucket were super slow, and I remember popular forums back then either didn’t support image uploads, or they were even slower to load than external hosts. So much internet history has been lost to “this image has exceeded its bandwidth limit” placeholders from PhotoBucket and TinyPic.
It was one specific date which imageshack decided to essentially ban all images being linked on Reddit. Imgur filled the void and grew via their own social.
IMO all the other free image sharing websites are still bad, i've yet to see anything that lets you -e.g.- make direct links to the images for use in Discord, Reddit, forums (phpbb), etc and not surround them with garbage and images tend to stay around for a long time unlike other places where they disappear after a while.
The only thing i found annoying with Imgur is the mobile site not allowing zooming for some reason (can be bypassed by loading the desktop version but it is still an annoyance).
Not sure if this will still be the case going forward though. I used to like Minus since they allowed all that stuff plus had unlimited GIF sizes and didn't reencode PNGs to JPGs (not sure if Imgur does that anymore) but after Minus was sold it went to hell and then disappeared completely.
