Actually it looks like it's because DO accepts Paypal, most hosts will require a credit card because of PP fraud but I guess they're going for markets where it's not common to have one. They do have free credits but PP billing requires a $5 charge which is already higher than a lot of other VPS plans.
No, it's not really because of PayPal. You can verify with a card, and stolen (or virtual) cards are cheap and easy to get.
Even if you do the PayPal way and pay $5, that's still better specs and lasts longer than what you get with a $5 VPS, because the trial credit is $200 for a few months (or if you go the commonly abused method: GitHub student, you can get $200 for a year).
And then combined with poor anti-fraud, poor abuse handling
TurdF3rguson|12 days ago
KomoD|11 days ago
Even if you do the PayPal way and pay $5, that's still better specs and lasts longer than what you get with a $5 VPS, because the trial credit is $200 for a few months (or if you go the commonly abused method: GitHub student, you can get $200 for a year).
And then combined with poor anti-fraud, poor abuse handling