The offensive content in it includes a monkey cranking a machine which says "N***** Crime Death Counter", with an announcer saying "Keep Cranking Bonzo, the Numbers Just Keep on Climbing!"
The new feature is possibly designed as a bonus for celebrities and influencers, in the hopes of attracting more followers and/or views to provide them with a stronger platform, which in turn would create greater competition for Instagram and YouTube.
Both social media platforms removed the newly enabled feature after learning of the issue, and have vowed to only reinstate the GIF option when they're sure it will not happen again, TechCrunch reports. In a statement, a Giphy spokesperson said that they removed the GIF after it was discovered.
Instagram made a similar move, and it's not clear when GIPHY will rectify the issue.
The spokesperson says that all GIFs in Snapchat are meant to be "rated PG,". Twitter user @LyaunaAugmon captured a screenshot of the GIF as it appeared on Instagram, writing: "This blatant RACISM @instagram @kevin is unacceptable".
Snapchat is letting some users tag their friends. The Giphy community guidelines prohibit this kind of objectionable content in the first place, but since it works like a search engine that indexes the top GIFs on the web, things can slip through.
News outlets have not yet received any comment from either Instagram or GIPHY.
A 21-year-old Snapchat user from England first spotted the racist animation in the library.
The incident is embarrassing for Instagram's parent company Facebook.