I get that vanity titles are a way to help startups hire good talent, but once you reach a nontrivial team size, this seems rather odd -- who are all these people directing exactly? It would make me very hesitant if interviewing a candidate who worked at Giphy, since their titles appear meaningless.
1. Director generally implies a manager of managers. If your title is "Director" and you're actually a team lead, it makes your company look like it doesn't know what it's doing. Specifically, the leadership.
2. If your resume goes from "Director" to "Developer" people are going to wonder what you did. It will cause people to take a second look at your resume in a negative way.
3. So at the end of that job, you've got someone who isn't qualified for a job with that title anywhere else and who will need to actively harm their career to take the jobs they are qualified for.
I'm sure I've forgotten several, but they've built a $600M GIF search engine so what do I know.
For some organizations, though, Director isn't really a "Director" but more of a rank like "Senior." By this I mean there would be Assistant Director of Blah blah Development that didn't actually direct a group of people, but were was a more senior-ish developer earning the Director part of their name. It is odd, but it wouldn't be the first place I've seen that.