Increase or decrease font size smoothly whenever user resize label using pinch gesture on it.
Note
extension String {
    func height(withConstrainedWidth width: CGFloat, font: UIFont) -> CGFloat {
        let constraintRect = CGSize(width: width, height: .greatestFiniteMagnitude)
        let boundingBox = self.boundingRect(with: constraintRect, options: .usesLineFragmentOrigin, attributes: [NSAttributedStringKey.font: UIFont(name: font.fontName, size: font.pointSize)!], context: nil)
        return ceil(boundingBox.height)
    }
    func width(withConstrainedHeight height: CGFloat, font: UIFont) -> CGFloat {
        let constraintRect = CGSize(width: .greatestFiniteMagnitude, height: height)
        let boundingBox = self.boundingRect(with: constraintRect, options: .usesLineFragmentOrigin, attributes: [NSAttributedStringKey.font: UIFont(name: font.fontName, size: font.pointSize)!], context: nil)
        return ceil(boundingBox.width)
    }
}
func resizeLabelToText(textLabel : UILabel)
{
    let labelFont = textLabel.font
    let labelString = textLabel.text
    let labelWidth : CGFloat = labelString!.width(withConstrainedHeight: textLabel.frame.size.height, font: labelFont!)
    let labelHeight : CGFloat = labelString!.height(withConstrainedWidth: labelWidth, font: labelFont!)
    textLabel.frame = CGRect(x: textLabel.frame.origin.x, y: textLabel.frame.origin.y, width: labelWidth, height: labelHeight)
    textLabel.font = labelFont
}
func pinchedRecognize(_ pinchGesture: UIPinchGestureRecognizer) {
    guard pinchGesture.view != nil else {return}
    if (pinchGesture.view is UILabel) {
        let selectedTextLabel = pinchGesture.view as! UILabel
        if pinchGesture.state == .began || pinchGesture.state == .changed {
            let pinchScale = round(pinchGesture.scale * 1000) / 1000.0
            if (pinchScale < 1) {
                selectedTextLabel.font = selectedTextLabel.font.withSize(selectedTextLabel.font.pointSize - pinchScale)
            }
            else {
                selectedTextLabel.font = selectedTextLabel.font.withSize(selectedTextLabel.font.pointSize + pinchScale)
            }
            resizeLabelToText(textLabel: selectedTextLabel)
        }
    }
}
I solved the problem with following code which is working fine with every aspect which are mentioned in question, similar to Snapchat and Instagram:
var pointSize: CGFloat = 0
@objc func pinchRecoginze(_ pinchGesture: UIPinchGestureRecognizer) {
    guard pinchGesture.view != nil else {return}
    let view = pinchGesture.view!
    if (pinchGesture.view is UILabel) {
        let textLabel = view as! UILabel
        if pinchGesture.state == .began {
            let font = textLabel.font
            pointSize = font!.pointSize
            pinchGesture.scale = textLabel.font!.pointSize * 0.1
        }
        if 1 <= pinchGesture.scale && pinchGesture.scale <= 10  {
            textLabel.font = UIFont(name: textLabel.font!.fontName, size: pinchGesture.scale * 10)
            resizeLabelToText(textLabel: textLabel)
        }
    }
}
func resizeLabelToText(textLabel : UILabel) {
    let labelSize = textLabel.intrinsicContentSize
    textLabel.bounds.size = labelSize
}
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