A penny auction is not an ordinary website, since it is necessary that the image on the visitor's screen updates every second. This means that each visitor's browser accesses the hosting server 1 time per second. If at the auction website, for example, there are 150 visitors, which is not much, this means at least 150 calls to the server per second. It doesn't matter if these visitors are registered users or not, wheither they are bidding or just watching.
This means that shared hosting is not very suitable for commercial exploitation of a penny auction. Only for a slow start. Same thing for so-called VPS (Virtual Private Server).
We always recommend that our customers use a dedicated server. Therefore, an offer of free hosting for 12 months gives us the impression that this software will never be used for a commercial run.