Similarly, Instagram's representative said: "This type of content has no place on Instagram". But now Snapchat tells me "We've disabled [the feature] while we wait for Giphy's team to take a look at it".
Instagram similarly disabled Giphy after hearing about the hateful GIF.
The GIF includes disturbing text including a racial slur, which TechCrunch has blurred out below.
In yet another move to outdo its competitors, particularly Instagram, image and video sharing platform, Snapchat, revealed that users can now tag their friends on the stories they post.
It reportedly read "N- Crime Death Counter - Keep Cranking Bonzo, the Numbers Just Keep on Climbing!", according to TechCrunch.
Snapchat has recently gone through the wringer after news broke that the company's stock price plummeted to an alarming new low, alongside the revelation that they have also laid off 100 employees.
Giphy has not yet responded to our request for comment.
A 21-year-old Snapchat user from England first spotted the racist animation in the library. Back in 2016 it was heavily criticized for creating an Asian "yellowface" stereotype augmented reality lens that gave people slanted eyes.
It means you can promote your friends or favourite influencers much more easily on Snapchat.
The incident is embarrassing for Instagram's parent company Facebook.
Snapchat is taking inspiration from Instagram for its latest feature.